Which is exactly the kind of things she is warning against.
But compared to USA/UK/China EU still has way better standards on all counts like: Environment, civic rights, consumer protection, worker protection, so no we are not “winning the race to the bottom”, in fact we aren’t really participating.

Edit PS:
Compared to USA that is actively making things worse on literally all the above mentioned fronts, it is without comparison better in EU, where some programs to improve are merely delayed, and not outright abandoned.
As an example the EV thing is delayed from 2035 to 2040. Generally the direction remains the same, to improve on all the above counts, even if it in some cases is a bit slower than originally planned.