It is totally wrong to look at such infrastructure from the lens of profitability which is a western/capitalism/privatism standing point. I am sure you grow up in such enviroment. China is none of them ever.
In a society where state is paramount, the state (King, Emperor or President) acts as head of a family. Some brothers live and work in the city like the eastern populations you mentioned, others live and work in the country-side managing summer house, farm lands etc. The father is responsible to make sure all members have the same living standard. To sustain a equal living condition for the forest house as in center of a mega city is NOT a business, nor is the father going to make a profit from himself or his children, nor is any children to complain about each other spending undue money.
Another example is China's "telephone to every village and later 4G to every village" programs. This will never happen in a capitalist country because operators will never build fibre lines or cell towers that does not make profit.
In short, China's seemingly "costly/wasteful" infrastructure program is like a person buying a summer house at high price for leasure. In the west it is a money making business of a property owner lending out apartments to tenants.
That is not to say that China ignores economic consideration, but that is like how one would consider where and how much to pay his summer house.
Not really right. the cost difference is the operation (electricity cost), not much of the line. 350 train and 250 trains are nearly the same cost to produce, but running at 350kmph consumes much more electricity than running at 250kmph. What was done was building 350 capable infrastructure at similar cost of 250 line and run at 250kmph to save electricity. It may further reduce to 200kmph because of the strong side wind that is frequent in the Hexi coridor and desert. There was many times that trains (any type) were forced to stop due to such wind. But in calm days, you can run up to 250.