Chinese Buyers Replace Canadians as Top Foreign Buyers of U.S. Homes

This isn't correct. By maintaining a low exchange rate, people were paid less (the government acquired debt in lieu of a higher exchange rate) resulting in China (the people in China) having a lower international purchasing power.

Wealth would have no doubt similarly been accumulated by those that owned the factors of production, but a lower exchange rate deflated China's, and it's citizens', purchasing power, from foreign holidays to domestic essentials, such as oil, and even the price of corn, beans and rice (produced domestically, but prices set largely by international demand).

Why? The government was petrified by unemployment. Closing down government enterprises meant people had to be employed somewhere. Better to have someone working hard all day providing for their family and seeing economic progress (obstensively the East of the country) than back on the farm with too much spare time.

Something different is happening now - from my perspective the East is 'developed enough' and bitterly complaining about pollution. The inner regions, comparatively much poorer, complain about lack of wealth more than pollution - so move some production there (despite significantly increased logistics costs), mainly for the now much larger domestic market, and let development in the East slow (or, slightly, contract - cool the bubble that does exist).

For housing costs - surely things like the EB-5, which for a modest investment can grant a green card for you and your family are a major driving factor.

Also, it helps America. The middle class can't buy homes any more, so it's nice we can import a new group of rich people. That way we can keep playing games in the real estate and mortgage markets.

Also I suspect lack of trust in the local stockmarket might have something to do with it.