In China you either comply and have a chance to build a company or have a job somewhere, or you don’t and... you don’t have a career.
It’s actually worked very well for them as now they have a huge number coming back after studying abroad. And as our immigration policy becomes more restrictive, China will be getting even more of their best and brightest right back.
Anyone with enough money to emigrate has a much stronger incentive to stay and play along with the system.