Why do many people feel the Chinese can't possibly be OK with their government?

Because the brainwashing of Western education is that the values of the Enlightenment are the only acceptable values.

Principals of democracy and capitalism underlie each other. If you believe capitalism is by and large the best system going, you probably also believe that free markets require a reasonable amount of transparency and freedom. (Freedom of capital to move, businesses to operate without interference)

These principals apply to science, business, and in governance. Ideas should be held up to the light of day and tested. That's the enlightenment.

You can always accept less...

Same question for Russians, please ;-)

US citizens aren't ok with their government, but that's not the issue. It's a risk management issue. Be reasonably comfortable and survive, versus die fighting while others watch on.