I would say that US educational competitiveness begins at the Master's degree level and PhD. Surprise, surprise this is where most foreign STEM students come in and, in STEM in particular, they represent 50 to 80% of the student bodies of our prestigious universities.
It is impossible in my opinion for the US to change its model to motivate, encourage and finance our home grown kids in sufficient numbers to fill our needs to remain competitive in the sciences. It's a given that our STEM education and jobs are filled 90%+ by 1st and 2nd generation Americans, green card holders and visa holders.
That's the same everywhere not just in the USA with Bachelor's degrees unless it's paired with practical working experience via internship otherwise when you graduate, you are no different from a high school graduate. The reason is because a Bachelor's degree only teaches the very basic level of theoretical knowledge. It's not high enough of a level to be employed for serious research work and yet it's not practical enough for jobs that require hands-on practical experience and/or skill. This is why in Germany, they have work-study arrangements starting at high school because in high school, you have already learned everything you need to hold a real job and all you need is practical work experience which the internship work arrangement would give you. But if you want real education that would prepare you for work that's really related to your field of study, you have to go for Master's degree. It's the same in all countries even in China and it has nothing to do with the quality of the university education; it's just how the university education system is structured and set up.
But of course you would know that with your unbiased view of how everything is in the West. No, once again the West is bad bad bad and China is all good; its education system is so advanced and fulfilling that its graduates are working as waiters and deliverymen.