It does not come for free. If China can at the same time use cheaper cost of production to compete against countries that have to increase their cost then other countries will loose. In both scenario everybody loses in the end but in the first scenario China will come out on top until then. The only winnable long term strategy is when China will play along all the time.

Everybody took advantage. The West had stagnating population growth that made it possible to have wealth growth. Everybody else had exponentially exploding population (also unsustainable, but prohibited to become rich on the individual level) that from the evolutionary perceptive gave everyone much higher benefits.

Now the fossil fuel usage in the West is stagnating or even decreasing. If China will not play along then everybody will loose. Even when the West would stop its fossil fuel usage tomorrow, the total amount of fossil fuel usage will keep growing. Everybody will loose but until it happens, China will stay on top while everybody else will start suffering already today. Everyone who is smart will not play along in this game.

The only real solution is possible when China start cooperating.

A dike had a large and small hole with that logic will be underwater.