I don't see (given their environment about secrecy and not wanting to give their bosses/politicians the bad news when there are failures) how this could be successfull. Its hard to innovate when your family risks being disappeared when you inevitably fail at some point of the larger effort and on the way to results that transcend the faults of that overall developmental process.
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The point is, the people in charge know what happened. They just have to decide what they can do about it. You're seeing it.
I realize too, its kind of hard to think about the next step after this line of analysis terminates. Like, ok, China was running sketch experiments and was not scrupulous enough in their oversight and safety practices, blah blah blah(!), what now? Are you gonna charge them the tabulated bill all over the world? It would destroy them or more accurately, give them a situation where they become Germany after WWI and have nothing to lose.
There needs to be an effort where they are held accountable and the zen koan paper tiger bullshit threats can be summarily sliced through but that still allows them to somehow save face on the world stage and domestically. I know it can't be easy to run that tight a ship without making powerful enemies no matter which step or direction you take.