China's problem is more pressing than India's. China has quite a well-developed and sophisticated internal airline system with all the associated infrastructure. The country is embracing capitalism rapidly (it was always a trade-based society, even in Communist years), and its economy is expanding at a tremendous rate. With several very large commercial centres up and down the Eastern and Southern coasts of the country, there is already a pent-up demand for air travel - it needs little extra encouragement. China has decided to order a lot of aircraft for delivery in the near future, and it can't crew them from its own resources as things stand. China also has a reasonably well-developed relationship with expatriate expertise in a number of fields, and is quite comfortable with the use of expat pilots. Of course, the lack of a democratic government and thus any risk to politicians in upsetting the populace may play a part here..!
The nature of Chinese and Indian politics and commerce are quite different, and the actions of one can't be easily read across to the other. China will accept expat pilots - at least for the forseeable future - India will not.
Scroggs