China did the right thing by their own people.  They followed a model similar to South Korea.  They leveraged their best resource: a highly motivated labour force that is open to being trained/educated.  This approach has allowed China to move up the food chain from manufacture of simple plastic products and clothing to the most complex manufacturing and assembly of high tech gear.  

You have a point that they haven't created a lot of new technology.  Don't dismiss their accomplishments in manufacturing as nothing. There is a huge and educated knowledge base in China.  Innovation is the next phase of their growth. It was done in South Korea and is underway now in China.   Buckle in...