I know someone who works at one of the government backed incubators in Shanghai and he told me that a few of the companies they have are pretty promising, but there are a lot of accepted companies who don't have much of a shot. Startup solve a national problem of having too many college graduates and not enough job opportunities, so some of the incubators just soak up some of the extra graduates with the hope that maybe they could make something useful with time. Of course, with continued government support the incubators could improve and become more focused, but for now it seems at least a few are a way to provide jobs to what may otherwise be unemployed college grads.