Yes,indeed,there are alot of well dressed young people in China,specially the major cities.Many of those ones are not common to see on street as they are kids of some what rich parents,or some what working in a nice trading office,sitting in the cafe house and travel in the private car/taxi.
But the main stream is still too much copy and influence from outside,and often overdressed with multi-colors and accessories(Not really all from Japan since there are so many national offensive feeling).
The hair are mostly well done as many believe the hair is their 2nd face.And the hairdresser are very skilled yet cheap in China.Meanwhile,it's common to see over done curling and colors as well,i remember about 4 or 5 years ago,all the chinese ladies dye their hair in blond,it was horrible.
Reply the fake label is also ture,specially the bag and belts.There are two kind of fake,one is those sell very cheap and crapy,but still got a Gucci or LV print or logo somewhere,another kind is very well done fake,they looked and touched exactly the same,often you can't tell the difference(this happened often on clothes).However,there are also a big rising group of chinese who purchase real luxury brands like Chanel and Amarni etc.I remember there was a interview with Karl Lagerfeld in Shanghai last year,that he said he thanks to chinese consumers since they buy so much and many of them are having a monthly salary round 500$.
I just came back from beijing and I can say that I was pleasantly surprised by the streetstyle there
Ok there were some over the top dressers and some with horrid clothes but when it was good it was amaaazing.. I saw so many stylish women who aren't afraid to dress up during daytime.. something I noticed is that I saw so many women who put a lot of effort to their hair, it was perfectly done like they go to the hairdresser to have it made everyday