They've tried everything except actually funding NASA, and they're all outta ideas.
NOTE: China WILL overtake NASA, the same way they are dominating the renewable energy sector — because they invest heavily in science, and they do it early. It doesn't take a rocket scientist to understand this shit.
Unfortunately that company is the best hope we have to stay ahead. With their low cost they can monopolize the worldwide launch market(except Russia and China). So that funding, strategically, must continue.
What should also happen is funding spacex competitors, so we stay on the bleeding edge.
That goes double for our educational system, which has been aggressively gutted by the GOP: People aren't just born engineers and scientists. These greedy assholes have doomed us as a country.
EDIT: GOP stands for Grand Old Party, which is the Republican party in the United States.
Also to whoever asked and deleted their comment: There's nothing wrong with asking questions when you don't know what something means or otherwise want clarification.
No, it won't. They'll just relocate to China, or maybe a super yacht out in international waters. They'll continue milking every last cent out of the US until it's a dead dried up husk of a nation and then they'll just move to the next one. Their supporters are too stupid to realize where the end of the path they've been told to walk is going to take them, and they'd rather blame anyone else but themselves for all the problems they face. So no, a space race with China won't fix shit.