They have even worse supply problems than the USA. If the USA drills for and finds more oil, the massive oil-price inflation will slacken a little. China and India will breathe more easily, sleep more easily, and work ever-herder making cheap goods to sell to the peons in the USA and the rest of the "civilised" world...
the way to "beat" China is to make oil incredibly expensive, and then efficiency of use and high-technology will be of merit, rather than dumb rows of workers hitting things with hammers and burning oil like there was no tomorrow.