As an armchair observer, China and businesses within it seem to have the general upper hand when it comes to production of most of anything. One popular tag line is that they lack true innovative IP type work but I'd say that's highly debatable. When it comes to pretty much any sort of physical production, the US seems at a disadvantage largely due to leadership and ownership direction starting from many decades ago.
I disassemble most things I get from china. There is a lot of engineering innovation, but the innovation isn't aimed at the user of the device. The innovation is in ways to make a functional device with fewer manufacturing steps, cheaper.
However, one day those engineering minds will divert their attention from making devices cheaper and more efficient towards making the same devices perform better and have more features. At that point, the consumer will see the innovation.