One of the features of a totalitarian government is the power to absolutely shape the populace. In China's case, their government planning sessions identify key technologies they think are the future and seek to be the best at, and execute on it. [0]Their tight control of their social media algorithms, combined with the ban on similar western tech in China allows them to minimize the brain rot in their upcoming generations. China is hungry, and America is full at the buffet going back for thirds.

Their manufacturing base allows for much more rapid iteration in related fields than our service based economy can. Combine this with increased military in these key fields they want to "dominate" in [1] spending and you'll see rapid expansion in scientific capability.

Of course there is corruption, world-wide IP theft, and other misaligned incentives there, but with a population 4:1 of the US, it was only a matter of time before the strategy paid off.

If they end up finding a fix for their birthrate problem, they will be the globally entrenched power for the next century, assuming they don't eat themselves politically.

[0]https://www.reuters.com/article/idUSKCN2AX0IW/ [1]https://media.defense.gov/2023/Oct/19/2003323409/-1/-1/1/202... - Page 168 for the TLDR,but the whole thing is a great read.