>but then lost their edge as China moved itself up the car manufacturing hierarchy
Didn't they lose their edge earlier and because the US togheter with some european nations forced their arm after a trade war to limit their exports, enforce an unfavourable currency regime, etc?
They boomed through the 80s/90s, but then lost their edge as China moved itself up the car manufacturing hierarchy, particularly in EVs.
Same with competing with South Korea, but Japan are coasting a bit.
China is at the start of that curve.
They'll end up diversifying into the rest of the world, but the 21st century will belong to China.