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They dominate plenty of industries today. What are you getting at with this statement?

Their ability to innovate.

Somewhat agree. They can dominate simple things with shear quantity alone. “Big data” is truly big in China. Quality, however, is still suspect. For example, from 10 years ago: https://m.chron.com/news/nation-world/article/Chinese-ask-Wh...

Chinese movies have gotten slightly better, like this year in 2019 having some blockbusters - but not international blockbusters.

Another data point on the quality front is the struggle of China being able to produce reliable jet engines. (Google it, recent news)

I agree, they only copy. But hey, the police state in Xinjiang is really helping them push their development of AI.

How broadly applicable is it? From what I've read of machine learning powered classroom monitoring systems from Hikvision and the like require regular retraining (eg: new 360 degree photos) for each student as they age and change. Seems like an idea that is 90% of the way there, and is mainly propped up by the central govt subsidizing these systems despite their severe limitations.