However, the question becomes which kind of product. I'm reminded of a popular "China's Got Talent"-style of show that included audience participation and voting, which the government shut down because it made them uncomfortable with the idea of regular people getting used to democracy. That's the kind of thing that chills cultural development, especially when an entrepreneur has to consider the possibility that huge sums of time and money spent on their passion could be flushed down the toilet because the communist party disapproves.
This would not be as much an issue for engineering products, and few I think dispute China's capability to innovate. I just don't believe global consumers will choose China over USA, Europe, Japan, South Korea, and so on.