Undoubtedly. But if the fact that 60% of the recruitment pool washes out due to physical inadaquacies poses a note worthy problem, then the fact that wash out rate would increase due to social and demographic factors would pose an note worthy problem as well.
Your crude attempt to silence your critics by lauding your own experiences cuts both ways. If you think it is a valid point to insist people who have not served in the military are categorically unqualified to speak on military affairs, then by the same logical, anyone who isn't Chinese, or at the very least spent prolonged periods living in mainland China and immersing themselves in Chinese culture are unqualified to speak about Chinese matters. Its all clearly bull, so how about we cut all the empty posturing and actually just judge everyone's arguments on their merits instead of playing petty childish games?
Please read what the actual article said before jumping on your soap box about social and demographics you evidently have little to no first hand exposure or understanding off. The 60% rejection rate was with university graduates, which at present only account for 10% of the total recruitment pool, and those rejection rates are based entirely on the unhealthy lifestyle many college kids lead, which resulted in them not meeting the physical requirements for military service rather than anything about their psychology or attitude. And if you had any real insight into how fierce the competition for college places are in China and how hard those kids had to work to get in, you would not be peddling this 'little empire' nonsense.
If anything, the issue with physical suitability is largely down to how hard those kids have been working to earn their university places which resulted in poor eyesight from too much reading and poor physical condition from a lack of time to do proper exercise.
The article mentions absolutely nothing about attitude or psychology being an issue, that is something you introduced entirely by yourself based on crude, outdated, patently inaccurate gross generalisations which you applied with absolutely zero evidence to support them in this context, and it speak far more about your own attitude and motivation than anything useful about PLA recruits.