> China at its historical peak was never more than a regional power
This is entirely a matter of foreign policy. In terms of production/population/capability, during many periods ancient china would rival/surpass the greatest contemporary empires. I don't think it's appropriate to say "they were not that great" if the main thing that differentiates them from "great" empires is that they didn't pursue a program of unconstrained conquest (and often closely related enslavement/ethnic cleansing).
> the CCP has done more to hold China's development back than western colonialism and the war with Imperial Japan
This is also not very clear. India had opportunity to work with the west/open market/democracy earlier than China yet is clearly falling behind China in development. In fact, I think one of the main reason for such compliance on the part of Chinese populace is that the standard of living really did skyrocket all within single generations. In 2000 people lived incredibly better than in 1980; now entering 2020 people live much, much better than they did in 2000. To disregard the magical transformation in standard of living (especially in urban areas) is disingenuous.
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At the same time I don't want to detract from what I believe is the main point. The deep ethno-nationalism and the sick man of Asia narrative that the government is instilling in the youths is truly troubling. It blinds seemingly educated people to obvious abuses by the government and casts the specter of "evil US" as a boogeyman justifying terrible Chinese actions. Even many of the Chinese I met in the US still believe in "US constantly acting nefariously to subvert China" story, despite living in the US for years...