At some point we can’t keep blaming IP theft for obvious innovation and investments being made by China.

We also can’t blame subsidy. All countries subsidize their industries.

This video on the auto industry covers a different industry but has a lot of the same rhymes as far as China’s strategy:

https://youtube.com/watch?v=UhhZu0ZHdw4

The gist of it is that China does the following:

1. Treats low margin industries like mining and utilities as areas to focus investment and come up with incremental improvements, making those available to all companies. The West, by contrast, allows private companies to handle those industries, who logically don’t bother investing in them since their investors consider those basic industries to be low-value segments of the production chain. But now we see those advantages in China where investments have been made (e.g., the best battery chemistries and mining/refining, the cheapest power (when was the last time your local utility company focused on reducing pricing?)).

2. Because all companies in China have access to the same excellent infrastructure, they must compete furiously on quality/features/price of their products.

3. China allows foreign competition so long as they operate in China (see: Tesla) further insisting that their domestic products be globally competitive and that foreign products sold in their country benefit their local ecosystem.