Understand your points, however

for the short term and mid term, China does not have the self-quality to close the gap with US. It will take a long time. The deep problem with China is its feudal system baggage from 5000 years of history. Therefore, there is a deep-rooted fear for state power. This fear for state-power is so strong that it's choking any new idea for innovation. Until one day that the fear for state-power is changed to a respect for legal system above state power, like that in the USA, China will not have a qualitative change. Until then, China is not probable to dominate the world. It will take a very long time to undo Chinese's feudal system mindsets. Probably longer than our generation.