Are you speaking about Chinese in the USA or in China? In China, there are probably very severe penalties for some of these activities. China could use more regulation and enforcement for vices. Still, the Chinese economy is much freer than ours. The Chinese need more property rights and environmental regulations. They are moving in the right direction as we move in the opposite direction.
How can an economy in which the government owns majority stakes in most of the country's largest companies (and handpicks the senior executives from the ranks of the children of senior Party members) be freer than the American economy?