To the degree science is a matter of writing academic papers, there is probably some truth to the assertion. To the degree experiment and the application of scientific discoveries matter more...well, Shenzhen.
Then there are the great leaps, usually possible due to breakthroughs or other wild recombination of existing ideas. These are feared- for as they offer bright rewards at the end of the road- they contain unknown problems, as in sub-problems that need often a combination of further break-throughs and/or incremental research. Fusion research is a great example here.
Some great leaps also turn into great very expensive wild goose chases.
Such risks make no buisness sense, but a central government can overcome the captialistic shortsigthedness - and attempt this research anyway and actually be better at it.
But if you can cheat (avoid risk) then cheat(avoid risk). Let others feed the crocodiles first - so chinese companys research will be as risk shy as western companys research.