I think what this signals is not that there is something particularly backwards about China. Chinese suburban sprawl shows that no matter the style of governance or how markets deal with housing, it seems like people converge on the same poor urban planning practices. Or, you could interpret the similar mistakes as proof that real estate in America is dealt with in a way that's far from free. Texas, the heart of the…
I'm sure there are many interacting reason for this, e.g. Japan's poverty in the decades after the war meant that cars weren't even a possibility for most people, and the sheer population of cities like Tokyo meant that mass car usage wouldn't be remotely practical even if everybody could afford a car.
But surely China has many huge cities as well, and the average citizen still isn't very rich...
My guess is that in Japan, developers just followed the money and did what's practical, and that meant building transit and transit-oriented housing. In China, on the other hand, with its strong centralized control, developers are probably more likely to be influenced by what the fat cats in the party hierarchy want—which is more roads for their Mercedes, and more "western-like" development which they associate with wealth and privilege—even if that isn't so sensible according to the situation on the ground (and isn't so good for the average citizen, or for the future)...