What "long time"? China has been the "factory of the world" for mere 2 - 2.5 decades now and has done huge leaps since the early 90s when it started.
For contrast, it took from '45 to the mid-70s or so for Japanese companies to start innovating.
>Only duplicated others' work identically or with uglier, shoddier construction at lower prices?
Also, "uglier, shoddier construction at lower prices"? You seem to be under the impression that the Chinese just build cheap knockoffs.
Actually they also build also the high quality, high precision stuff you buy, from iPhones to BMWs (as of now 1 million BMWs have been assembled in Chinese plants).
That's what they did in the past as I stated. They were renown for it. Later on, they started innovating a ton on top of that. The transformation was covered very well in the Wired Shenzhen documentary.
https://www.bloomberg.com/view/articles/2013-02-01/piracy-an...
http://foreignpolicy.com/2012/12/06/we-were-pirates-too/
I think it's a really interesting phenomenon how quickly we as a culture are able to imagine that what we're experiencing right now is without precedent.