China's military poorly trained/equipped?

Many people say they are.They have the 2nd highest military expenditures in the world (meaning better equipment,training) and are increasing it every year.Their training videos look tough.Military ysts say that they are well trained and equipped.Recently in joint military practices,Chinese marines in fact beat U.S. marines in an exercise (youtube.com/watch?v=bFoWCbQjwXw).When Chinese forces went to Somalia many of the pirates were reportedly scared and instantly backed off.Other examples include other militaries (Russia,India) saying China has good training/equipment.Do you think that the Chinese army is really poorly equipped and trained (they are very secretive) or are military ysts/pentagon reports only exaggerating?