China's smartphone industry is actually Innovative
Brands like Xiaomi, Realme, OnePlus actually innovate
However, the Chinese state policy to force foreign car makers to have JV's with local co's and transfer technology resulted in Chinese local co's producing clone products of their JV partners instead of innovating themselves.
I still do have hopes from SAIC motor, Geely, and BYD though, I think they can be important players in the global auto market in the coming decades but the thousand other auto companies china has built, I doubt many will survive.