More than that, they have a better culture -- value hard work, education, and self-improvement. Same reason why I have never seen a homeless Asian in the US. As China gains more power and global influence, it will be interesting to see the CCP's views on racial equality and diversity in general. I suspect they won't give 2 shits about it.
But there's a big difference in that spending. China (and even Russia) spend far more intelligently on defense than the US. US spends a lot of money keeping US troops stationed full-time in countries that should be able to defend themselves (Germany) while China spends the money mostly on weapons and technology development. That's a far smarter strategy. Maybe demographics. That could be China's downfall. As countries become more developed / educated (and people have more things to do besides making babies), birth rates tend to drop. Also seems that they are having trouble getting past their one-child policy.
I think you get double standard. US government (not military) has vast other spending on intelligence gathering. US Justice department (FBI, CIA) is not part of US military and its budget is not included in defense spending. Not sure why you single out China and Russia.
This is not new. There might be some true facts but the predictions have been around from quite a long time.