They quite possibly are (I haven't seen the evidence for that but it is believable).
However education and health care which are free at the point of use are, in my mind, 'fantastic' given not many countries offer such quality services without the recipient paying directly for them. Even those 25% of schools (I'm quoting you here) which are failing, offer a standard of education that is likely far better than even the best schools in certain parts of Asia or Africa.
The UK's NHS is one of the world's best institutions, and free for all Britons. There's little dispute the public services we all enjoy in the UK are 'fantastic' when compared with public services in other countries.
And all those point out that people don't emmigrate to China. True. But when China constitutes 1/7 of the world population, focussing that population in universities and R&D centres is the same thing.