It was "something" for millenia actually! http://en.wikipedia.org/wiki/Economic_history_of_China China was an incredible economic force until the early 19th century - in fact, it was the largest economy for a couple of thousand years. The problem is that it was never able to really industrialize and, of course, the Communist Revolution really put it in the backwaters. But now the tide has turned and you will, imo, see China return to where it was just a few centuries ago. China has produced a 150 years of development in just a couple of decades and there is no sign of that trend stopping. Think about this: China in just a few decades has eclipsed Europe and Japan. Think of this also: Russia was considered the premier Communist leader when I was a kid. China has now buried Russia economically. China is growing faster and it is because it is MUCH better run economically. These people are brilliant - it's actually astonishing. Russia continues with its same old oligarchic ways with stiffling, foolish anti-free market tactics. And so Russia is now a lumbering dinosaur and China a Ferrari. In fact, it's fascinating to many people that pre-19th century, China was incredibly important technologically and economically. Many consider them the world leader of the time. However, and I'm not sure what it was, but imperialization did not treat them well and they were left behind. But now, at least by all appearances, they are returning to their "rightful place" on the world stage. As long as China can keep the same leadership philosophy in power, nothing will stop them. These people are dead serious and you may not be looking over your shoulder as long as you think you will...
Though you are repeating common wisdom, i don't agree. Several of your statements are either flat out wrong, or could easily become wrong, on a on a per capita basis. (which is the only basis that counts.) To paraphrase Gore Vidal, "the common wisdom is quite often wrong." (Actually i think he really said: "... is almost always wrong!")