You are right. I think most people should know this. Rip off happens everywhere. Just that china has more people and the probability of it happening there is higher than other places.
Not to say that the US didn't do it, or that Japan was also well known in the 70's for much the same thing, but to say that it is only because China has "more people" and more "probability" is misleading. The practice is widespread and encouraged, not just by their culture, but also indirectly by their government.