Sorry, but this sounds more like a myth, or at least heavily exaggerated. Similar to how Japan often gets romanticized.

Organizing the entire chain geographically at the scale you described (inter-city) doesn't bring huge cost advantages by itself. In China labor has historically been cheap, so the transport cost between regions was never the dominant factor anyway.

Most industrial clusters in China formed organically over time just like the rest of the world. Aside from some exceptions like mining, there isn't some master plan laying out entire cities as linear supply chains to the ocean It's not SimCity.

One thing you're right about is that there is less bureaucratic friction or 'lawyers' in the way when it comes to economic development. For the former, it's because economic growth is THE metric for the government, especially at the local level, so they do whatever it takes to make it happen. For the latter, it's because… well, in China no one sues the government, period. I'm not sure it's a good thing.

Disclaimer: I'm Chinese living in China.