Average height of young Chinese men measured in 2013 (age 20-24) including the rural regions is 172, sure. But if you include urban only, and measure again in 2020, the figure would be like 174cm. Chinese height has grown rapidly and is still growing.
But there are massive height differences between different regions in China, so generalizing Chinese height is pointless. The tallest region is like 177cm while the shortest region is like 165cm. And even within a single city, there are massive height differences between classes. Rural migrants to Beijing for example for example are far shorter than the wealthy urban raised youth. China is still a poor country with massive economic differences per capita, but it's obvious that when given the same wealth per capita as the West, Chinese will not be short, and northern Chinese will roughly match western Europeans in height.
But in the West, 90% of Chinese come from the far South, so there is a selective bias.