Let's remember that China funds all kinds of research, not just the research with guaranteed profit. (Indeed, private industry already funds research with guaranteed profit.)

There’s a lot of work that is “useful” but the return on investment is not direct, but rather indirect.

For example I don’t remember the detail exactly but this professors insistence to study extremophiles has directly translated to many improvements in medicine.

What other sources? You can't just hand wave like that, make a specific proposal.