> In West, there isn't a similar chaos to be organized and most people behave quite amicably. Thus, strict oversight is not needed and instead decision-making can be distributed to the people...
I think the term shalmanese used, "ungovernable anarchy," is a fair description of Chinese culture. However I think you are mistaking this to also imply non-self-organization - which would be inaccurate.
Chinese culture values pragmatism over consistency. As a matter of pragmatism, the Chinese are cognizant of working cooperatively with other people in order to better obtain their individual or their respective families' goals. Families that work together survive together. To this end, in Chinese culture, people do often help each other out and look after each other like family. The Chinese aren't as unsophisticated ("non-amicable") as you think.
In this culture of ungovernable anarchy, individual agents grow up to be highly autonomous adults. You can see this manifested as immigrant Chinese entrepreneurship in places all around the world from America to Africa. The self-organization aspect of this culture are manifested by the numerous Chinatown communities in cosmopolitan cities around the world from New York to Montreal. These communities aren't led by any all powerful authorities - they are self-organized ghettos, sociological gems.
> instead decision-making can be distributed to the people...
Jordan Peterson once said something along the lines of how the more we clamor for autonomy, the more we also internally desire to be controlled - or something of the sort. I wish I could find the clip since I butchered that.
However, I'd say there are abstract kinds of tyrannies that people subject themselves in America. An example is how Americans are taught to follow laws, regulations, or processes even when they are inefficient, wrong, or don't make sense. The Chinese people are more willing to avoid these formalities because they may be more confident in deciding for themselves what makes sense.
In this way, the Chinese people can be said to have more freedom than Westerners because they don't subject themselves to a certain form of other people's control. Such a contrast makes Chinese society seem relatively like a self-organizing "ungovernable anarchy".