All of what you say is true, yet in academic research China is still far behind the USA in nearly every field. They haven't yet been able to build institutions with the staff, structure, and culture needed. That will likely change in time, but at present the best Chinese scientists are still coming to the USA to work, and staying here. Despite the USA having a lot more research output, a substantial fraction of the top scientists in the USA are from China.
My Chinese colleagues tell me that the bureaucracy and authoritarianism in Chinese institutions puts a lot of hurdles in place when trying to do research. Simply buying equipment, hiring staff, etc. is a nightmare, and results in "evaporative cooling" where the top researchers with the option to work anywhere don't tolerate this and leave.
Edit: I will also add that in some sense US academia is supported by overcharging Chinese students for tuition. If and when Chinese institutions get to the point where the best students want to stay there, there will be a huge crisis in US universities, possibly being unable to support tenured staff.