As far as I can see this is just history repeating itself, until the problems are acute nobody will give a damn about the longer term consequences.
On the other hand, I don't think I'm any better informed than Chinese policy makers or technologists in the energy sector. I mean, the technology we're talking about really isn't rocket science: a precipitator is just a pair of plates charged to high voltage with dirty air forced through.
Moreover, Chinese elites certainly travel to the US and Europe and Hong Kong (indeed, many attend colleges abroad) and they get the differences in air quality very well. I would be very shocked if said elites never went back home and inquired as to the difference and what it would take to eliminate it.
My guess is that they could substantially reduce power plant emissions for an increased electrical cost of at most a few percent. On the other hand, I think China uses coal with a much higher sulphur content than is typically used in the US and they have substantial non-power-plant coal burning....
There may be an incompetence factor but it sounds on paper rational. Between freezing and coughing what would you pick?
The urban middle class buys portable air filtration systems, it's a huge market.