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Interesting.

But whenever the gov't of a country has said, "We'll be the next X powerhouse!" and dumps money into it, it usually fails. The market tends to be a step or two ahead of gov't. In the late 80's Japan's gov't set out to make the country the king of high-def TV. When they finally had market-ready products, the world had moved on from analog to digital, making most of their R&D & patents obsolete. I suspect there will be (another) AI slump, and S.Valley will quickly move onto to something else. China will be left holding a bag nobody wants. The churn & burn of "cowboy capitalism" is bit too jumpy for their tastes.

[slededit]

The China model is actually pretty similar to the VC model, except with the government as the venture capitalist. I don't know whether it will work out for them or not, but one thing China has going for it is a higher level of pragmatism than most countries and the political power to make things happen.