the west is setting itself up for failure in phase 2

That means the west cannot handle China's rise in their own direct interactions with China. We have to assume failure here means the west cannot take the fullest advantage of the opportunity from rise of China, or on the flip side of that, the west is unable to mold direct or contain the rise of China.

So it fails, because the west's China policy yields nothing. That essentially the Canada China relationship at the moment.

The second prediction is more subtle, but logically connected.

The west will fail with the rise of China because of three faulty assumptions.

The trick here, is that these three faulty assumptions are applied by them to all non-western people, including China.

Therefore, the west will not be followed by anyone in this world with the rise of China.

He actually does say it, but in an indirect way, so it is easy to miss.

We must acknowledge that a tsunami of de-westernisation is under way.

Kishore Mahbubani is really from the Lee Kwan Yui school of thought of Asia.

Strongman Lee was a proud Chinese person, and to him, China cannot be contained. If they try to contain China, all that will happen is it would isolate themselves. (Stuff from the 1980's IIRC).

If you are isolated, your leadership role is non-existent. That should be common sense.

These fights over trade, and over Huawei 5G are important.