Earlier quoted context omitted.
Alternative: Innovation happens within the context of Chinas censorship and political regime. Blocking of entrenched western competitors allows home grown solutions to spring up, and local technological know how to develop faster. Capitalism and innovation turn out to work within the context of an illiberal society just fine. Especially as China avoids the mistake of closing itself off to the rest of the world, but s…
Illiberal regimes are assumed to be kleptocratic. Historically, it's rare to get a succession of just rulers when the temptation to take is there, and there isn't a strong balance of powers. There have been just rulers for a while, but the risk of regression to the mean is ever present. We'll see how things go.
It's also not clear whether kleptocracy can't be implemented in a way such that it's not a significant detriment to development. Singapore is arguably a kleptocracy, but it's a surprisingly well-managed one.