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"......The claim was that the ability to put one over the other party in a business transaction is a universally accepted, expected, and even admired part of Chinese culture......"

As a business owner that contracts with chinese manufacturing I see a lot of 'cheating' over time. I buy a lot of cables, fans and computer components. What you initially see may not be what you get later. An example given me, that applies across a wide spectrum of products: is tennis shoes.

You spec out a tennis shoe with the president of a chinese manufacturing company. Your deal is for shoes of 'x' quality, made to your specifications, over a period of 2 years. Initial production and shipments not only meet your expectations but exceed them in promptness and QA.

Then comes the QA Slippage. Starts with the sole of the shoe, which is supposed to be spec'd out at 6 MM thick - is now 4.5 MM. You don't even notice because the shoe looks the same. Customers are not as happy with them though and sales drop a little. Then the laces, instead of being 80% polyester are now cheap garbage that looks the same but lasts your customer a couple weeks.

The president of the manufacturing industry you contracted with is down at the executive club merrily talking up his wonderful joke on you with his fellow business owners. He is PROUD of his screwing over of what we would consider basic business ethic, but which he is culturally rewarded for doing the opposite. He is more proud of the cheating he gets away with than he is worried about you not contracting with him next time. There seems to always be another sucker in the channel.