One thing I have noticed after watching some of the Youtube videos is the failure of Axis players to recognize or comprehend the value of mobility in the Chinese terrain. They complain about the lack of maneuverability, yet consistently fail to research the Mobility tech. Oh, well . . .
In my current playthrough as the Allies, I invested two chits in infantry weapons for the Chinese early on and, as you have suggested, made mobility less of a priority. The first couple of years the Chinese are essentially playing a delaying action and it wasn't until the October, 1941 turn that I had the Chinese invest in mobility. Infantry warfare, logistics and industrial tech were also early research priorities. The end result of this strategy is that the Chinese have gradually begun to sweep east, destroying Japanese units piecemeal and, ultimately, have captured a couple of coastal cities/ports while surrendering little territory. As the Allied player, the goal has to be making the war as expensive as possible for the Japanese, leaving less resources available for their forthcoming conflict with the U.S.
On a side note, I understand in the Beta testing process that there was appreciable debate regarding the Chinese as too strong/too weak, but, as it currently stands, their strength seems just about right.