You bring up some valid concerns but remember that, historically, as the US economy grew, so did the individual freedoms of its citizens. I think the same thing could happen in China. As their economy expands, the government will have a harder time keeping the population in check.
Similarly, as the industrial sector expands, they will have to increase efficiency and part of that will be by using more environmentally friendly equipment, as well as increasing resource recycling.
So, I think that Chinese investments can really be a boon in the long run. It may take a while, but that's the way I think it'll go in the long run.