China is definitely bad at basketball development.
Every shot of an Army base has a basketball court.
The CV-construction barracks ship's most prominent feature is the top deck basketball court.
Clearly people in China love playing basketball, but there hasn't been anyone even close to the level of Yao Ming.
Even if you consider Yao Ming as a generational talent, there hasn't even been half decent role players from China in the NBA.
There is a 7-4 kid in the NCAA of Chinese descent (partially), he is from Canada. The Chinese population in Canada is roughly 1.5m.
Statistically speaking, that is a fail.