i do not know about china -- though your experience does not match any of the chinese IT professionals i have worked with in the last 13 years in the US -- but though there is some abuse of the H1B program, in my experience, especially in the late 90s, it did bring in people for jobs that could not be filled with local talent (this, afaict, has nothing to do with the difficulty of the jobs, but more to do with the rapid growth of demand during the bubble). part of my experience comes not just from my knowledge of non-USers i worked with, but also my experience trying to hire people for IT jobs.
--ravi