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"But I think China wants to mainly increase talent retention. There are many Chinese who stay in US after finishing their studies there. China wants those educated people back."

They should consider democracy, then. Educated people like that.

I was born in a communist country. It's not surprising to me that smart people want to leave.

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Communist != undemocratic

China happens to be neither communist or democratic

How is china not communist?

They don't even claim to be communist? The official line is "socialism with Chinese characteristics" which is already pretty misleading.

Yeah, if you think of word "communist" as a name for an ideal, perhaps it's possible. But most countries that were designated communist (or socialist, which is even more misleading) were also undemocratic, and I happened to be born in one of them (Czech Republic).

The "communist" part of the system I was born in actually worked somewhat. What didn't work was absence of democracy, which means there was one hierarchy of power. This was the cause of nepotism, corruption and pollution, just as it is in China.

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