Your emphasis on speeding up technology development is, of course, fine. Anyway you fail to see:
1. There's a limit on how fast you can grow. I think it was with the Semiconductor fund 2 where the top manager was finally imprisoned. He had been unable to find sensible use for all the money and so he had invested some of it in construction companies. Maybe he should have tried harder but anyway there may be a problem.
2. In China it's not 'the government' which does those developments. A big majority of investments is done by local governments in cooperation with private companies. Initial breaking of new avenues is the job of national government. This further on leads to a situation where many companies try different approaches, compete fervently and cut the prices. Profits will drop to low levels. This helps their clients but the top government may have to interfere to raise profits to such levels which enables further research. In the US it's nowadays typical for some huge companies to achieve near monopoly positions which permits highly unusual profits. Now it happens that in macro economics we have a formula called Kalecki-Levy profit equation. It states that total profits are a sum of some other items, primarily of total investments. This means that in US the small and medium companies are left with quite little profits whereas in China among players of all sizes some more have reasonable profits while others must be content with very tight margins.