China strikes me as a somewhat oppressive society, whose norms and mores I would prefer not to live under. However, I do not have the impression that it is ruled by fiat. They have harsh laws against corruption, though my impression is that enforcement is uneven and many choose to gamble, on either not getting caught or being able to bribe their way out of trouble.
Isn't it possible that you're just defaulting to assuming business operators are generally innocent and public authorities generally dictatorial?