China has both carrot and stick. Living standards there have improved dramatically over the past few decades. Over here they use a smaller stick, but no carrot at all.
This sounds more a product of censorship rather than China being particularly better in those aspects. Police in China are less likely to kill you because guns are uncommon, but they are just as shady if not more, especially in more remote areas. Healthcare access and affordability are also worse than what you'd expect from a communist country. Homelessness in China is definitely a lot worse than what state numbers suggest. They just drive out homeless people who they're less visible.