China is definitely quite a competitive economy in the technology space. I wouldnt say its the next SV. Rather would group it as its own class. Most of the businesses grew out of protectionism offered by thr Chinese govt but noe they seem to have made it.
The protectionism was/is there in the US too. I unfortunately can't remember the details but there is a video in the Computer History Museum that tells a story about how computers from Germany were blocked in the US and the impact it had on both countries.
Of course, as the US now has a extraordinarily strong advantage in the sector it doesn't have to flex that muscle as often. But it does flex it when needed.