I'm not sure that it's true that China is pouring large amounts of money into things. Like everyone else, they make their investment decisions as they see appropriate. It's not like we don't get stories of VCs throwing money at all kinds of weird stuff in the West.
The main difference is that if you work hard (and obey crazy laws) in China, you will get a noticeable improvement in your quality of life. In the West it's kind of the other way around: the harder you work, the more you miss out.