It seems like a really awful way to grow up.
Another factor is that a lot of parents in China either experienced significant material deprivation themselves, or are one generation away from people who did. So to these parents "success" through wealth (and hence security from poverty) takes on disproportionate importance. This sort of dynamic can also be seen in a lot of first-generation Asian-American households, often to the detriment of the relationship between the parents and their children.
Perhaps the parents who were interviewed for the article overstated the difference, but here in Canada the situation is a bit different for a couple of reasons. First, we send so many students to college that getting into and through the less prestigious colleges isn't particularly impressive. Second, the jobs available to those who couldn't quite make it into college are still pretty good. Electricians, mechanics, locksmiths, and paralegals don't come cheap around here. So there's a lot less pressure all around.
And perhaps beyond that that the economy is such that many degrees from less selective schools are worthless regardless of how much a student learns to earn it?
Learn how to read and think first. Then perform the college ritual and learn the secret handshake if it gets you want.
Prestigious schools are desirable explicitly because most other people were rejected by them.