I think you're misunderstanding me. Conflict is not war, two companies selling a similar product are in conflict. I don't think Google is sending a hit squad to Microsoft because of their competition.
China clearly wants to compete with USA on multiple levels, they've been doing this since the country was reformed under communism. It's not like they even pretended anything otherwise. From Mao to Deng to Xi China has always said it will develop in it's own way and will confront any one who tries to disturb the peace of the country. Sure enough, from the moment China was reformed, USA has constantly disturbed the peace of the country. Thus, China has always known they were in conflict with the US. It's only now they're strong enough to make it clear they want to be left alone and will use their military if it comes to it.
So yes, even though it's defensive (and I'm not saying countries shouldn't be defensive) China has wanted this conflict. They have every right to this conflict as it's literally the sovereignty of their nation, but it's still wanting conflict. One that they have a clear path to victory.
Actually it exactly resembles stagflation. It's one of the reasons I said underemployment and not unemployment. During the 90s, Japan's inflation rate was around 3% and they couldn't get it under 2%. Sound familiar?
https://www.in2013dollars.com/japan/inflation/1990#:~:text=The%20yen%20had%20an%20average%20inflation%20rate%20of,82.953%25%20of%20what%20it%20could%20buy%20back%20then.
The other part was low unemployment, but mostly government jobs that didn't do anything. But it did create historically low unemployment and higher than average labor force participation.
https://mpra.ub.uni-muenchen.de/14332/#:~:text=The%20%E2%80%98lost%20decade%E2%80%99%20in%20Japan%20was%20a%20period,when%20it%20reached%20a%20historical%20maximum%20of%205.5%25.
What you are seeing is USA doing exactly what Japan did in the 90s, which is have a target inflation rate of 2% that they can't reach and hiding the high unemployment numbers with underemployment in crappy jobs.
Edit: just look at this rocketing government employment.
https://usafacts.org/reports/2021/government-10-k/part-i/item-1-purpose-and-function-of-our-government-general/employees/#:~:text=As%20of%20the%20dates%20shown%20below%2C%20there%20were,local%20government%20employees%2C%20of%20whom%2023%25%20work%20part-time.
More than doubled in a decade.