Outlawing of competition? The US, Europe, Asia et al are free to compete on battery technology, auto manufacturing, renewables and all the rest. The problem is they're NOT competing. Traditional automakers (e.g. GM, Toyota etc.) are spreading plenty of FUD about EVs and nonsense about hydrogen / ammonia powered cars. But compete? Not so much. Perhaps if they did, they'd wouldn't be in such a precarious situation.
China stole a march because they went all in on EV technology while other regions dithered. That doesn't prevent other countries from catching up, and innovating in their own way. There are countless companies looking to improve battery technology, range, motor efficiency etc. so that I think batteries in 10 years from now will be nothing like the ones of today - they'll be lighter, more energy dense and probably solid or semi-solid state batteries. Many of these innovations will come from Western companies. Competition is the answer.
Protectionism is certainly not the answer. Either by slapping tariffs on Chinese products or extending shitty ICE tech because the West is so backwards it can't compete. That's "outlawing of the competition". We should not tolerate ICE vehicles a second longer than necessary, at least where EVs are viable replacements. China probably has most to lose from the West pulling its finger out of its ass and actually competing and that's what needs to happen. And any company that can't keep up even with 15-20 years warning deserves its fate.