I don't get why you're being downvoted. China just needs a Deng Xiaoping moment for software. If they try top-down control, even with all the Chinese brands behind it, it will still founder behind Android.

But if they relinquish some control for the sake of getting a competitive OS where they can't be cut off, what you're saying is true. I do see them capable making an OS, technically, I'm more worried about their worldwide soft skills/soft power. Which I'm guessing they'd also want to improve, so you never know.