China is a serious country. The West is (mostly) not.
The economics is largely irrelevant. China could be in just as bad a state as the West if they put people in universities based on sex or skin colour rather than merit, taught them that people can change sex just by saying so, and continually told them that China was evil and Chinese people should just disappear and be replaced by Indians and Africans.
> in many parts of the country schools are literally falling apart while good teachers leave the profession because they cannot afford to live on a teaching salary
Meanwhile, if you look at education outcomes against spending over the last few decades, outcomes in the US have become worse and worse as spending has risen.