My experience echoes this - i review for a number of materials science journals and i've noticed a steady increase in the quality of work coming from the chinese universities. Its becoming well written (in english, which is not easy for them i think) and increasingly relevant. I would predict that before long they will need us less than we need them.
The only case of blatant cheating (copying and pasting "nano particles" all over a SEM picture) came from india, not china.