Chinese Domination

Out of a total 360 or so gold medals in the contention so far, Chinese athletes have won a total of 165 golds and another 160 or so silver and bronze. What is it about Chinese way of life that makes them such strong sportsmen? Funding from the state (definitely helps!), inherent physical characteristics (definitely not), or years and years of focussed and dedicated practice right from early childhood (seems most likely!)? Can the Chinese factories mass produce athletes like they mass produce goods?