I guess it would be too much to ask for people to find out if the statement is correct.
Now the words "spiritless and look obtuse" I can object to, since how would he know what a random Chinese person on the street is thinking. But when people travel they often describe the differences between people, and this is certainly one of the noticeable differences in a Chinese city.
While it looks odd to a westerner, if you think about it, it is a lot cleaner than sitting on a park bench. The only part of them touching the ground is the bottom of their shoes, just like when they are walking.
I've traveled through China and Thailand a number of times and it's quite common to see men squatting like this all over. Women as well, but not nearly as much.
I just figured they're used to it since they use squat toilets. It seems to me to be related to how modernized or rural a place is. It was not common in the modern places. I didn't see it in Japan although I never have been to Rural Japan.