I think looking at Nobel laureates is a red herring. Look at the list of science laureates and their biographies see that their educations came during eras when you really couldn't get an education in China. There was basically no real academia until the Cultural Revolution ended in 1979. The next generation of Chinese leaders are still ones that spent their "college years" working on farms in the countryside per Mao's policy to send youths to work amongst the people.Yet the Chinese are still under-represented when it comes to scientific advances despite such a large population and look to continue to do so for the foreseeable future.
http://en.wikipedia.org/wiki/List_of_Chinese_Nobel_laureates
None of the Nobel Laureates in science listed above were Chinese nationals when they won their award. The one Chinese national who did win one (for Peace), was imprisoned by the Chinese themselves.
This difficulty is hinted at in many articles including this one:
http://www.msnbc.msn.com/id/3953902...-faces-hurdles-amid-quest-nobel/#.UGIIV1HheR4
China is currently posting an inferior model that will never 'catch up' as it stands and the change required to do so will result in an internal social change that will nullify them as an opponent, in the sense that the technological advancement of the UK or France is not to be considered a threat.
I don't think you should look at representation based on population either, when a ton of kids stop schooling at age 16 and head off to work in factories.
I think current patents, graduate students, graduate/college student quality, and academic publication are better indicators. Looking at a list of people educated in the 1960s-1970s (or earlier) as an indication of education quality 40 years later is extremely imprudent. Look at the names of valedictorians at "elite" schools. Look at the names on patents put out by Western companies considered to be innovators.
I think there are issues with the overall Chinese education system. But I've met some of the smartest Chinese nationals while in attendance at a US college and grad school both considered to be in the top 5 in the US, as well as when studying abroad at a Chinese university considered to be in the top 5. Yes, maybe the top 1% in the West is better than the top 1% in China, but China can probably skate by just by sheer numbers.