I understand that the Nationalists lacked tanks, aircraft and other heavy equipment but how did that happen? Surely the German advisors would have pointed this glaring problem?
To add on: Fresh divisions that arrived on the scene were hastily thrown into the front line either to fill devastated units or into the brunt of Japanese attacks. I also would not describe the troops as being 'Elite' in comparison to some of the Japanese troops.
Check out the book on the book list, "Shanghai 1937". The book gives some great insight into the failures of the Nationalists and the strategic thinking of both nations.