There are many more countries with violent governments that don't tolerate dissenters than there are ones that have the technological success of China.
Most of them are much less strategic about what they drive for. But a "more free" state could certainly be more strategic as well about aims, goals, and definition of success; the US has done it before to various extents, for instance.
The claim has often been that it'll eventually collapse like in the Soviet Union—because "not caring about what individuals want—has been believed to be a major limiting factor, not an advantage. But it hasn't yet.