The Chinese athletes get a nice reward for getting a gold. And I'm not sure they have the endorsement opportunities other countries have. The financial incentives may be the only reason they train.
Anecdote - In Australia, I see very, very few non-westernised Asians participate in exercise or sports.
To put concrete terms on "reward", it translates to like >$30000 cash from the national government (already 3x median household income), and additionally sometimes rewards from provincial government, luxury cars, and houses.
ie: http://img-9gag-fun.9cache.com/photo/5024234_700b.jpg