China is making strides, ya, but it is still quite behind the west. Take the educational system for example: it is great if you are middle class with money, but it doesn't work well for most of the students who go through it (whose parents lack those resources or even city hukou to attend a decent school). And there is nothing magical about it, many of the upper class send their kids abroad for education (and the parents often follow eventually).
Anyways, we said the same thing about Japan in the 70s/80s, and they really didn't blow past us. If you want to see where China could go tomorrow, look at Korea or Taiwan today, and that would be an ideal outcome.