Under the shiny coat?

Consider this sample situation to better understand the chinese economy. A company say Nike opens a factory in China. It hires the local Chinese population who slowly rise through ranks in the organisation and now manage the entire factory. The shoes are designed in the Oregon, US design center or the Milan, Italy design center which provide the designs and blueprints for the manufacturing in Chinese factory. The Chinese employees in the factory take these designs and manufacture the shoes. To manufacture the shoes they using machines built in Germany, Japan, Korea, America, etc (The Chinese employees are capable of managing the entire factory including evaluating vendors from Germany and other countries for the machines and spare parts). A couple of these employees are very entrepreneurial and feel they can do better and they start their own factory they are faced with three choices. They can manufacture designs whose patents have expired or difficult to enforce and sell under their own brand name. This works in case of raw materials industries (Chinese steel companies have managed to build a global presence in a short span out competing prices of local vendors in their respective countries), But in consumer goods they rarely succeed as they are considered cheap imitations. Even if they do they are valued only for their affordability a USP which is very hard to maintain (In, India Xiaomi built its reputation as an affordable phone with Hi end tech specs, they were able to maintain this reputation only for 3 years and were supplanted by One plus as affordable Hi spec brand). They can become an OEM manufacturer for Nike or other brands they would manufacture shoes at a price lower than Nike owned Chinese factory which would cause Nike to outsource manufacturing to them and reducing their overall investment in China. This would be good for the entrepreneurs but not for the Chinese Economy. They can manufacture the goods and spuriously brand them as Nike and attempt to sell them, As they won't be able to use Nike’s authentic sales channel their goods will be sold as fakes and will never catch the large international market. They can try designing their own shoes this usually fails in established markets where players have existed for decades as the employees have very little design experience. Very few Chinese brands has global consumer appeal. Only Chinese brands in niche and new markets have little success (DJI which makes drones has good acceptance). This is China’s biggest problems for their economic size their Soft Power is almost negligible. This is why they may never become a superpower even if their economy grows to be multiples of the American economy. In the 21st century American soft power had a global reach be it their Jeans, Hamburgers or Hollywood Films, American hegemony always was a dominating influence.