Im not sure they could be a first rate country unless their culture, political system, and mindset changed. Chinese generally feel no obligation towards their countrymen and are always cutting corners and putting dangerous shit in their products. My uncle was telling me how the Chinese government had a protein requirement in their tard cum, so farmers who were unable to meet that through their feed gave their cows a chemical that’s poisonous to people if consumed... for a country that’s supposedly thinking 100 years ahead their citizens definitely aren’t.
Their political system will not change.
It is true that the Chinaman naturally has a low morality. He can only behave in a decent and civil fashion when forced to do so by both the political system and the general culture around him.
Why do you think Singapore bans the sale of chewing gum? Why it fines a person caught spitting in the streets more than 700 USD? It is because the Chinaman must be constrained by laws to behave in a civilized way, not to mention the other groups present in that territory. And Singapore is a tiny police state. China is an enormous empire. It is very difficult for the CCP to crack down on the normal behaviour of the Chinaman. It can't ratchet down the pressure on every objectionable behaviour at once.
This is why they try to apply that pressure slowly. With things like social credit systems to restrict the ability of fraudsters to just move on to the next city like some kind of malignant gypsy.
But this event is not going to seriously affect the Chinese empire, and it is not going to damage the power of the CCP. It may cause some economic issues, but it will be properly managed, and will give the CCP more power. More power that they will, hopefully, use to crack down on the regular Chinaman who enjoys torturing animals, who is totally unconcerned for the public good.
Comparisons to Japan are reasonable. The Tokugawas, correctly, opposed Western colonialism and persecuted both colonisers and collaborators for two hundred years before they fagged out and cow-towed to American imperialism in the 1850s. And they fell from power for that crime. The Meiji emperors needed nearly fifty years to build power before they could overturn those colonial treaties. But they did. By the time dreadnaught battleships began to be built, they were sending Japanese workers to learn side by side with their counterparts in Britain, and then bringing Vickers workers over to Japan to assist them in their own shipbuilding efforts soon after.
The Chinaman was only partially freed from direct colonial occupation a century after, and they had been subjected to the 'British' Sassoon family pushing opium on them for a century, which the Japanese had not.
Japanese electronic equipment was still the object of derision in the 60s and 70s. Just as Chinese equipment is now.
Japanese success has been led by a strong, hard, nationalist state. Unfortunately, as someone who doesn't like them, the Chinaman is now blessed by such a state.