What they do is as a plane arrives, they direct people to the appropriate side. The citizens line process a lot quicker, so as they get empty, some non-citizen queuers are told to move over to the now mostly empty citizen lines. Then the next plane's passengers arrive and the whole process is repeated. ie the primary goal is that citizens go quick, and the others are second priority. But as you noticed, it starts getting messy as multiple plane arrivals overlap with each other, queues progress at random rates, and it isn't a particular effective system anyway. The booths work the same way as you described China's, but have additional complications (eg people using the app, and the receipt.)
I had the misfortune of arriving on an international flight to SFO when they first got those booths. Some official decided to constantly shout and berate everyone trying to figure them out (he would keep contradicting the screens, or interrupt people trying to read them etc). Thankfully I haven't experienced that since.
And it used to be a lot worse. Instead of a single long queue, there would be long separate queues for each desk. It became quite an art trying to deduce which lines would process quickly.