People said that about Japan 40 years, they said that about Korea 20 years ago, and it's already becoming irrelevant about China today. Yes, they caught up by copying, like everyone else did (including the USA).
There are now entire product categories which come out of China and no-where else. Drones. Camera gymbals. Personal electric scooters. Heck, their entire system of government could be called "innovative" - certainly no-one else has ever tried that before.
Give it 20 years and it'll be onto the next developing country which is copying to catch up, and China will be amongst the lead innovators - if not, as I suspect, the easy winner.
Every shelf at your local store filled with imports from that one-party state is pretty new in my book. And "strongman"? What are you basing that on? Saddam Hussein was a "strongman". Xi Jinping is unusually powerful for the president of the CCP, sure, but he still needs to be re-elected in 2022.
How many ground breaking innovations has China had?
Quite an impressive number. Enough to fill over 27 volumes in a project spanning nearly 70 years: Joseph Needham's epic Science and Civilisation in China.
The point isn't that the west hasn't copied things. The point is that the west puts emphasis on originality and "innovation" and downplays the value of copying.
Learn to do it right (copy), then figure out how to do it better (innovate).
Exactly. The obsession with "innovation" is how you get feature creep. You can improve something by copying it and figuring out how to do it easier/cheaper/quicker.
As @jacquesm noted, you kind of picked the wrong target there.
But to get to the root of your argument: accepting copying as normal does not mean "no innovation", but "different innovation". Does that mean ground-breaking stuff would pop up noticeably less often? Possibly. But it's also likely that once released these products would iteratively reach a higher level of quality than what we have now (I cannot equate "learning from the masters" with the existence of Windows 8 or Gnome 3, for example). Different paths, but headed the same way.
https://news.ycombinator.com/newsguidelines.html