9005.1 Assessment
Research Question (Clear, unambiguous) Seek to discover "if parents’ investment in children’s education reproduces or reduces social inequality in contemporary China."  How parental investments influence their children's economic attainments is a good question.  As stated here, the question is probably too broad.  First, you might try recasting so as to ask under which circumstances parents' investments in their children's education seem consistently to reproduce social inequality and under what circumstances they have the opposite effect.  Second, you might want to reconsider the possible meanings of "investments".
Relevant Literature The discussion of relevant literature is fine for a starting point.
Causal Interpretations (clear, all parts defined, mechanisms, controls, plausible) Yes, different amounts of parental investment could depend on the parents' economic resources and on their understanding of education as a mechanism for promoting their children.  We need to remember that parental resources are cultural as well as economic, and the cultural may be more valuable (or more transferable) under some circumstances.  We would also need to consider how the social and political environment might create variations in the opportunities available to parents to further their children's educations.
Data (variables, sample, comparison) The data sound plausible for the purpose.
Research Value This is not discussed clearly in the project outline, but the potential value of the research is obvious.
Overall Assuming that the data are sufficient for the task, this amount to an effort to extend "Western" analyses of social mobility to China.  Some efforts to do this have occurred and you would need to review them both to ground this project and to figure out what you would have new to offer.