How should I understand the underlined?
Thanks in advance.
The first failing, of which Mr Obama in particular is guilty, is misstating the problem. He likes to frame America’s challenges in terms of “competitiveness”, particularly versus China. America’s prosperity, he argues, depends on “out-innovating, out-educating and out-building” China. This is mostly nonsense. America’s prosperity depends not on other countries’ productivity growth, but on its own (actually pretty fast) pace. Ideas spill over from one economy to another: when China innovates Americans benefit.
Frame of reference | Define Frame of reference at Dictionary.com
The first is about the frame of reference. How you respond to a situation depends on what you think the situation is. That depends on how you view it.
The second simply states that the world (the world's markets) is interconnected. When someone in China creates an innovation, it benefits everyone.