This is mainly aimed at avoiding uncontrolled surges and collapse of the healthcare system and is effective for that.
However, indeed, this must be 'step 1' and combined with a broader strategy of vaccination and controlled exposure to the virus otherwise you only end up with an infinite cycle of lockdowns.
One issue in China is that although their vaccines do help they are much less effective at preventing infections than, say, Pfizer and Moderna, or AZ.