That is correct.
The new generation is very excited about this, is working hard, and is highly competent. But filling in the infrastructure, such as materials science, takes time. The space program is the tip of the spear. When the space program gets moving, you will know the rest of the industry has advanced as well. Change is coming soon, is already begun.
For China to become a technological power, they need to come into the 21st century at many other levels as well. You've seen the space photo taken in the last year that shows the earth at night. You'll notice that there are no lights to speak of inland of hundred miles of the chinese coast. Contrast this to India, or the US or Europe or Japan. This picture says a world about the econmic might and stability of various countries. Economic power and internal stability are related. That photo shows not only the economic power houses of the world today, it shows where the worlds fault lines are and where regions of economic depression exist. China has to deal with that. We should also be aware that Chinese political stability is threatened by its economic weakness.
Chinese dreams of space domination are just dreams for the foreseeable future (at least the next century).
BTW, if you get to see the photo I refer to, contrast N. Korea and S. Korea. Another flash point that we have to be very careful in handling.
BTW again, contrast the Muslim and Christian worlds in the same photo.
Maybe someone can post it here.