True, but you present no case that supports your position except cheap currency. That cannot last forever. Being the world leader in innovation and industry takes a lot more than just low cost labor and undervalued currency.
It takes a culture of industry and capitalism and freedom to sustain all that. We have that, China doesn't, and China won't have that, not for a long long time, if at all.
Instead of being so paranoic about China (remake of the Japan Inc paranoia of the 80's) we need to focus on our own problems like the education and competitiveness of our schools and our youth.
technological development takes place in countries where engineers are employed and investments are made. The US has no special "god given" culture of technological innovation - it takes investment and people. and when those investments are not made here, and when those engineers are not produced here - we won't have that going on here. Its happening already - parents are pouring their kids into law schools, engineering programs are collapsing. and its not because our schools are bad - its because there is no economic incentive to go into the sciences.