There is potential, like you stated. But the manufacturer's mentality is still two short sighted. It is still all about the quick buck and it is extremely rare for any company here to be willing to loose money for even a year just to guarantee a better product down the road. China controls the cheap quality market. Sure gradual changes are being made and product quality is increasing, but the real question is will it increase enough before the Chinese market bubble burst? Many countries are already look towards cheaper markets in India, Korea, etc.. So if/when that happens on a large scale, China won't have to be the best, but it will need to be considered one of the best; if it is going to keep growing.

As long as they just copy stuff, no, they can't be the best. They will have to learn to innovate their own products in order to get ahead. That will take a lot of time and effort on their part to change, and so far, they haven't been going in that direction. At this rate, one day, maybe even sooner than we think, companies will think it is too expensive to produce their products in China. Then everyone will move their factories elsewhere. This will have a huge impact on the Chinese economy, they depend on it for economic growth. What they have done has worked great for them until now, but they need to change, and change soon, or they will be left behind.

I think it's possible. They got money an resources. What they lack is a pool of talented people.

in a country with billions of people they must have millions of really smart talented ones. the problem is that creativity is a dirty word here. they are raised to be followers not leaders. copy over create. dont question and do s you are told. also their business practices have to improve. a quick buck is better than a long term investment, no matter how much it will pay in the long run. 1000 kuai today is better than 10000 tomorow.

No. They don't have the innovation or work ethic. Remember there's only 100 million people in this country that aren't bumpkins. Plus, they may bring experts in to the country, but never actually listen to what they say.

Example you gave was wine. But, did you know they've been making western wine in China for more than 100 years and it still sucks?

A snowball has a better chance in Shenzhen in August!!!
It's all about making money here, not about doing great things.

no, as long as the govt remains the answer is never. you cant lock up your greatest thinkers for thinking and expect that to lead to innovation

China will certainly be and remain the number one in terms of copy, infringment of copyrights and the absence of creativity. This rank cannot be unbeaten by any other country, even by other emerging powers.
According to you "They have the numbers, they have the money, they have the different climates and they're starting to have the know-how and machinery."
Most part of the people including in your item "numbers" are farmers or non qualified workers, who are simply a cheap labor force for both foreign multinationals and local companies.
As for the "money". China indeed has a lot of money....why? Because none of the governmental budget needs any approbation by the Chinese Assembly (actually, it does, but since it's a almost one party assembly, votes are casted in favor of the one party). Which means that the Chinese government can spent billions for Olympic Games or the Shanghai Expo, without any citizen has the right to say anything about it. But all this money is used to build things or create events to show that China is a superpower, while China is unable to deal with the pollution created in his rivers, fields and soils.
The different climate is an excellent things, but except for the few vegetables that are grown in the proximity of any cities, fruits are often imported from abroad or produced in far-western areas of China and with the absence of a good transportation system from West to east or South to North, prices of transport and pollution generated by the transport in used currently just accentuate the problem of pollution.
As for the "know-how" and the "machinery", nothing has been invented by Chinese companies, they are all the results of the copy of technological process or machinery or also the results of the so oftenly used "transfer of technology" to allow a foreign company to produce in China. Most part of the "know-how" is also imported by foreign companies to China, where they form local Chinese (German companies are an excellent example of the machinery and the know-how provided in China)
For the moment, China is still going well because of the "numbers" that make the labor costs cheap, the fact that Chinese government doesn't seem to publish realistic accounts of water pollution, land pollution, protect any big food scandals to come out, and finally that Chinese people still believe in Deng Xiaoping's maxim "To get rich is glorious". How long can it last, this is I don't know, but long enough to make China unable to be the best at everything.

China will not become best at everything...not in this century

China is still a Child, at twelve.....

It's impossible to be the best at everything. Either pick your niche and develop it further or become a rounded out country with no particular strengths or weaknesses. That's just the way it goes.

for everything is BIG DREAMING ,for manufacture/develop citi/ is Ok for LAW still 100 YEAR,china people to selfish