I don't know any brand off the top of my head from China that is top-quality. Most are blatent, cheap, ripoffs of better brands.
They spend only enough to get ahead of their competitors, which is why I said it's a completely different model. Progress happens more incrementally.
Also, this is only an example of copying relatively primitive designs, not expensive R&D.
I've been to China many times over the years for business and I haven't seen anything revolutionary.
China's lax IP laws will only get them so far. If they want to actually become a real tech. center, they need to have protections in place for inventors/companies (and actually enforce them).
The other problem is government corruption, but this is for another discussion entirely.