China already beat the US in innovation. Just look at LTE/4G. A certain company had to beg politicians to hinder competition.
You could not be further from the truth. I work in the engineering field with China and they are very much a copy-cat culture. They do not intuitavely understand the technologies they buy intellectual rights to. I have a family member in the software industry and she has faced similar issues. You attempt to train simple fundamentals over and over again and all they want is a paper justifying it so they may carbon-copy it without truly grasping the underlying principles.
China realizes their innovation is horrendous and they are desperately trying to develop innovators, there was actually a good Times article about it.
This is certainly not me chearleading the USA, it's just that China is probably near dead-last in ground breaking innovations and having a free-thinking inventive culture, at least among first world countries.