China is definately far better than India in many sports, last time in Olimpics, they came no.2, wait and see in Beijing Olimpics 2008, they willl move to no.1. It is not becuase of population, it is because of 1. Government Support, 2. Physical fitness is part of education from Grade 1.
There are many dedicated schools where students from 05 years practice more physical education and sports activity and regular education is only a small part of it.
We have many things to learn from China, similarly many things to avoid from them, like Total westernised culture etc....