The US doesn't want China replacing the US in other countries, though, because that still means less business for the US.
I don't think this is going to play out the same way it did with the Soviets. The Sino-Soviet split happened specifically because China could see what the United States was doing and how it was going to win the Cold War, so they played the long game and made themselves an essential part of the global economy. I guess it all comes down to whether or not China is ready for this - and it looks like they are.
I don't think copyright should exist, but as long as it does I lean towards "no" because AI images are just copying with extra steps imo