Fantomas, the Chinese are very capable of creating a product which has all the features, but they are terrible when it comes to designing a product which works well. I have bought a fake ipod and it worked, but it was so laggy and annoying to use that I stopped using it (not to mention it came with a 2.5mm headpone jack).
Even proper brands like HTC were awful, I know several people who had the HTC Diamond and it was the worst phone they had ever used: it was impossible to make even the simplest of calls because of the lag, weak touchscreen and poor menu setup.
My friend who has the fake iPhone forced himself to use it despite it being laggy and constantly shutting down by itself, but after a few months the phone just died completely.
The Chinese can manufacture products very well, but cannot make their own (yet) without someone else designing it for them.
But just like Korea and Japan, countries which used to make cheap and unreliable products, China can develop and shoot to the top of the market...but I don't see it happening any time soon.