Its because the prices arent inflated to the point that the part the workers are meant to cover is unaffordable to them.
https://wise.com/us/blog/china-healthcare-system
Mandatory for urban residents in employment, paid for with employer and employee contributions. Employers may pay 6% - 12% of salary, employees typically pay 2%².
Basic health insurance is 2% of your salary
Non-insured health care remains cheap.