Just because innovation happened without software patents does not mean that higher quality innovations can not exist with patents. I know of algorithms which give certain companies an edge in their flagship international products. If these algorithms were able to be patented globally, it would be a large benefit to the entire industry. Since China is part of this market, the company does not patent this algorithm and instead keeps it as a trade secret.
I think in this case it would be better if the algorithm was patented.
We need to distinguish this case where the patent is truly non-trivial and would not be able to be re-created without great expense. It's very difficult to evaluate this, especially for those who aren't experienced.
Honestly, I don't think "end of all software patents" is the solution here. Imagine if NNs were developed completely as a trade secret.