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Hardly to do with diversity and everything to do with China being a country composed mostly of illiterate peasants until Mao's death.China is 100% doig this.
I do think diversity seen in the West results in innovations that China can't match. Thats why China just steals everything.
After that they focused on building the basics that people in the West take for granted. Roads, transmission lines, buildings not made out of bamboo etc.
You don't reinvent the wheel, you copy it.
People in China from the same generation as Bill Gates or Steve Jobs were forced to work in the fields, Xi Jinping was sent by Mao to live in a fucking village instead of studying.
Until then, you had more innovation coming from tiny Switzerland or Sweden than China.
In 40 years or so they have companies that while not as rich as their American counterparts are able to compete. Alibaba, TikTok, Huawei, ZTC, Xiaomi etc.
It's only a matter of time.
Huawei 5g was put in production before any western 5g