The original question is about now and the future. History from hundreds of years ago is a broader topic involving context to understand how and why. I put more value in first hand experience of the last 20 years. There is a common theme related by people that have spent time in China doing business. The average person is hard working and willing to learn a skill in order to build a better life. A better life means elevating themselves to achieve a higher goal of elevating the country of China. Higher education is reserved for those showing potential as defined by the government.
Also, directly from people doing business is that China is very good at copying, including mistakes. In Engineering classes Chinese students frequently held the highest GPAs, knowing that number would determine job assignment when returning home. They were very good at memorizing and taking tests. Applying book learning to practical situations was a weakness. In laboratory work, most Chinese students fell to just average. Some did not have the common sense to keep their fingers out of live electrical circuits.
Can Chinese companies compete in high end HiFi gear. Yes, but not with innovation.
I can also make similar assertions. I worked with a lot of technical folks in Silicon Valley for a decade. A lot of these folks were FOB from China (some went back to China to form business and innovate). In my experience the Chinese were some of the most brilliant and creative minds I worked with. I guess based on my experience I can conclude that all billion Chinese are incredibly talented and innovative.