I don't like a certain conflation of terms in discussions like these - merging together creative thinking and business. The two things are only vaguely related. To overuse a tired term, inventing a better mousetrap spring != designing a better mousetrap != being able to make that better mousetrap a commercial success. The last part involves a lot of work that isn't creative, and that benefits from business-friendly conditions, which are not necessary for the creative work itself.
> I wouldn't think USSR was that great at creative thinking, either (on a bigger scale).
True, especially in the later years of the USSR. But they did launch a satellite into space before anyone else. At some point they were creative thinkers, at least.
We underestimate China to our own peril.
I want to emphasize that there are tons of incredibly brilliant minds in China working on amazing things. It's their government system that makes it so that rather than incentivizing innovation, they've focused on building the most efficient IP theft system the world has ever seen.
See e.g. some of the stuff Bunnie wrote here: https://www.bunniestudios.com/blog/?cat=20, starting with: https://www.bunniestudios.com/blog/?page_id=3107.
But USSR also maintained multiple closed cities which would contain the smartest people they had in the whole of the union. I am certain if you picked a few people from there they would be of a completely different opinion of what USSR was at the time as well.
So I am wondering if modern-day China has those, too. They might not be bringing huge industries to fruition based on their research - but on the other hand they might be working on strategic projects such as submarines, etc that are hard to clearly see behind the usual commercial noise.