My suspicion is that an authoritarian regime is likely to offset the centre of the creativity distribution.
But that's not the full extent of what I suspect of the Chinese population's distribution in terms of creativity.
My thoughts are that it's more likely to be a partially truncated normal distribution, with a rapid and significant drop off at the high end of the creativity spectrum.
This is all pure conjecture, but if either possibility is true it would be significantly restricting to Chinese creativity, and if both are true it would be devastating (especially in terms of their ability to compete).
You are right however, that China does have a significant advantage in terms of scale due to their population - and this is an advantage compounded by low pay and a lack of worker rights.