The problem with that, is that it's a vicious circle. Innovation is the foundation for future innovations. It builds on itself. It lays the groundwork and foundation for what comes next. By leapfrogging and cheating its way to the top (or near the top) they are sacrificing that crucial infrastructure for future discoveries and innovations.
China has to copy & steal IPs because it simply doesn't have the culture to compete. They're one of the least innovative countries on Earth, year after year. And the only way to change that is by allowing its citizens to think creatively, outside the box -- to be able to challenge authority. But China doesn't want that; they want conforming little worker bees who follow the party line.