I wouldn't say that necessarily; I think the ground forces are very much oriented towards fighting a conventional nation state army in a conventional land war, and despite certain weak points (such as the presence of some still obsolete AFVs or lack of universal body armour), there are also certain strengths such as maintaining a large and competent artillery and I think a capable internal logistics chain. (Though I'd agree the PLA is not very well equipped to fight an insurgency like what we've seen in the middle east).
Even in terms of the most "advanced technology" the army's suppliers are probably not that behind their foreign counterparts -- the industry is there, and they produce some small batches of high end equipment for testing, assessment and limited fielding among some operational units. But the Chinese military are making the decision to not equip their army with modern equipment en masse (yet), likely due to greater demands on their Air Force, Navy, Rocket Force, and other military operations.
Instead, I think the PLA are keeping the industry competitive and relatively up to date by giving them contracts to produce new weapons, AFVs, and equipment in limited runs, but not willing to plough in the money to buy and equip them en masse which would require a substantially greater amount of money not only in the unit cost but also the cost to change the army's entire logistics to suit the new equipment and revised training as well.
I expect that in the near future, as the Navy, Air Force and other arms of the military and support services begin to be able to become more competitive with their potential foes, then we will see some attention to be diverted back to the Army to bring them back into better strength and give them some of the equipment that is more standard for better funded armies.
So the issue isn't one of the Army "not having the technology" -- because their suppliers should definitely be able to produce a good proportion of equipment that is standard for other national armies -- but rather it is a question of whether the Army has the budget allocated to equip their soldiers en masse with the equipment... and in the past and at present it is a definite no.