The YMCA (who basketball James Naismith worked for) brought basketball to China in 1895. Along with ping pong (Table tennis) basketball became one of China's most popular sport. As early as 1917 Mao Zedong published an essay, "A study of physical culture" it is clear Mao thought highly of athletes. Communists believed the sport to strongly represent their believes, all players and positions are equally important.

Skipping ahead to the 1950s all child athletes whether their sport was ping pong, gymnastics or basketball were sent to sports schools. In 1959, Rong Guotuan won the Table Tennis World Championship, the first Chinese person to a 'world championship' in any sport. However, ping pong is not really a big deal, it is a "Small ball sport" Chinese bureaucrats knew to get respect they would need to win the "Big ball sports" such as basketball, soccer and volleyball.

Basketball and other big ball sports quickly took precedence for funding over other sports. Children who were predicated to grow other 1.8 meters were selected (re: forced) to train in the sports schools.

Skipping ahead to 1990 China and the NBA agreed to a deal to broadcast NBA games in China. The NBA is the only American broadcasting 'entertainment' to be aired in China. In a 1992 "less than scientific poll" of a classroom of school children Micheal Jordan was found to be the most famous person in China behind Premier Zhou Enlai.* The class then recited all the statistics you might find on the back of Jordan's basketball card and then some to the visiting American teacher.

*Those previous two sentences are from Operation Yao Ming pg. 113

TL;DR the Chinese like basketball. Basketball was considered to promote Communist ideals and be a way in which China would be able to achieve glory and respect on the international stage.

Refrences:

Operation Yao Ming by Brook Larmer

From Evangelism to Entertainment: The YMCA, the NBA, and the Evolution of Chinese Basketball by Judy Polumbaum in Modern Chinese Literature and Culture Vol. 14, No. 1 pp. 178-230