China doesn't realize how much they are being held back by meaningless investments of time and expertise on this. They spend almost the same %GDP as the US does on the US military as on their internal suppression forces. Maybe it's good for the world that they burn so much talent and wealth on adding inefficiency to their internal information exchange.
It is not the goal of the CCP to advance China as it is to keep themselves in power.
For example they actually bow to American pressure and try to avoid sanctions or other trade problems. As of today their navy could be completely destroyed with like 30% of the US Navy, so any naval blockade is probably unbreakable for them. Iran's hunta would (and did) just say "whatever" and continued tanking the GDP.
Another example - the Chinese intelligence helps domestic industries, even those that are far from the defense business.