Firstly, in regards to what? Military? Sure - they're probably a century ahead of Australia. Standard of living and quality of life? Not a fat chance - give it another 50 years and we'll see.
I'm going to assume you're referring to technological difference between the two countries. Australia doesn't develop much technology - they buy it from other countries. That has more to do with government policy than anything else. The government here simply doesn't incentivize research - all they care about is coal. Australia also has the highest proportion of international students from China than any other country - so much so that they make up a significant portion of the population here now. In contrast, look at the number of students from the west who choose to study as international students in China (or any other Asian country for that matter). I'd guarantee you it'd only be a fraction.
There's a reason why so students from Asia flock to western universities and not vice versa. Many high ranking business and political elites from countries such as Russia, China, etc, all choose to send their students overseas to receive a western education. You don't really see it going the other way around.
Many Asian countries will score well ahead of the curve in areas like mathematics etc, beating out countries with many top academic institutions such as the US. However, a key thing to remember that is that western education isn't solely focused on book smarts. It also places significant emphasis on free thinking and creativity, which generally leads to a more well rounded education and an overall improved society.
EDIT: I realised the 3.5yrs refers to the previous article on how Australia is behind on math. This was addressed in the last paragraph.
A new report reveals top-tier Australian universities are highly dependent on international students for revenue, with even a small decline in Chinese students threatening dire consequences.
www.abc.net.au