Using fear and brutal dominance causes people to take less risks and focus on appearing to succeed instead of committing to the unpopular, long-term effort and delayed results that innovation requires. China's appearance of recent success is exactly that - an appearance. A thin facade created by a PR campaign. We all know from being ripped off on Amazon the real quality of Chinese products. It's exactly what one would expect from a country of prisoners.
If China is such a great power, why not compete on a even field? Get rid of the mail subsidies and use a fair currency exchange rate. You won't, because you know your backwater has no hope of competing with civilized nations. Arrogance and corruption are not a replacement for responsible and effective.