For college graduates to find jobs in their specialty, there must be enough jobs in their specialty which need to be filled. This obvious fact is often ignored in the U.S. by those who wish to study medieval French poetry or other topics for which there are no financial rewards. My guess is that the Chinese are finding out that their form of government/economy simply doesn’t support a large number of people that had the gumption to complete college.
I recently had to hand-hold a Chinese man in our department through some extremely basic data manipulation - apparently he hadn't learned precisely those operations in college. This is a recipe for failure - almost everything I do today I taught myself on the job.