Earlier quoted context omitted.
> At least in my (very narrow) experience I have not seen much evidence for qualitative innovation in china This argument never sounded very true and intellectually honest to me. I mean, I want to believe in it, but when I scrutinize it precisely, I wonder - how can you measure the ability to innovate of someone who doesn't want (or need) to innovate? At present time, China's competitive advantage is cheap specialize…
If you look at Japan and Korea who took the same approach of "cheap specialized labour", they both pivoted to high quality, and more innovative once they caught up. I have no doubt China will do the same, but at much larger scale. There's already a lot of innovative consumer products coming online, which I'd attribute to the vibe of rapid and efficient hardware products iteration in Shenzen.
China's goal under Xi is a return to the golden age of the Kingdom of Heaven, where all Chinese people exemplify the ideals and morals of the most civilized society on Earth. That goal is only tangentially related to the technical innovations they're making, and will eventually stifle them as the definition of "good citizen" and "proper pursuits" becomes more hardened and inward-looking (much like it did during the Middle Kingdom).