It doesn't even have to be something as advanced as semiconductors, duplicating a line that manufactures something as prosaic as paint is an exercise in patience and frustration. It's like building software from source using documentation, you may think you wrote down all the steps, but you find all the crap you missed when you actually try to execute the task.
2) Top-down command is anathema to engineering progress
American corporations are bad enough for only reporting good news up the chain (see: Intel and deep UV lithography). A dictatorship like China is going to be ridiculous. You will deliver good news to Dear Leader, and you will deliver it when expected, or you will find yourself in the doghouse. So, especially if your task fails, you will make bloody sure that it either gets reported as successful or that you leave someone else hanging with the consequences (see: China and water and rocket fuel). This slows the engineering process to a crawl as nobody can trust anything delivered from anybody else.