I don't agree that our space effort is faltering.

But considering, that hundreds billions of dollars were spent over last few decades, it could be called a dismal failure.

Could it be a faltering failure?

It could be something one hopes for, but it's sort of like hoping you will pay less taxes.

And in addition I think it's possible that Obama [the raging socialist] *might* do some good in this area.
And I'm sure, that Bush did at least ok.
The Clinton administration, might done a few things right. Though the X-33 wasn't a shining moment, though maybe for political donations it was a smashing success.

"But the Chinese program is flourishing...for what reason, again?"

I don't see the Chinese program as flourishing.

The Chinese are making slow progress- and they actually want to make slow progress.

India [or some other country] in the next 10 or 20 years could have more happening in regard space than China.

But do I think the Chinese are serious- and sure, they want the propaganda value, but they also have more practical plans.
I have little doubt that there will be a Chinese person standing on the Moon within a couple decades.

But let's put this in prospective, as long as the country wasn't mostly some repressive shithole, with about 5 billion dollars spent, any country starting with nothing could get to the Moon in less than 10 years. And for a more complete lunar program with all the bells and whistles you could wish for, say, 10 billion.

Bill Gates if it tickled his fancy, he could send a crew to the moon for about 1 billion dollars [spent, rather than invested].
And for example, Google with it's modest [comparatively] 30 million dollar lunar prize will and is having a significant impact.
http://www.googlelunarxprize.org/
Btw, if you solely look at from PR value- a bargain.

So, I grant it's possible someone over in China could grow a couple brain cells and do a lot more than they are currently doing. And unicorns could sprout out my ass. But for a nation that dreams to be a superpower, China efforts to date have been rather modest.