I wouldn't say that. I would say that the Chinese Government has allowed the free market to take over this task. Take a look at http://www.tomshardware.com/reviews/chinese-arm-soc-mediatek... all high quality ARM SOCs from Chinese suppliers.
Likewise, http://en.wikipedia.org/wiki/MIUI is a fork of Android that reportedly runs faster than Google's stock shell. (I have seen an old version in action on Android 2.2, it was fast, really fast, from what I have read newer versions are just as zippy) Xiaomi has also built up a complete separate (successful!) ecosystem outside Google's, something that Amazon has tried and failed to do.
In another few years you are going to have a Chinese controlled mobile OS being used throughout the Asia Pacific region, running on hardware designed by Chinese companies.