Earlier quoted context omitted.
The thing they have zero tolerance for is the embarrassment, not the corruption, pollution, crime, or other abuse. You can do whatever you can get away with so long as you don't cause embarrassment or shame.
That's one of the big cultural differences that people from the West don't really get - that "saving face" is one of the core concepts that Eastern societies are built on - not the actual things that, when discovered, cause you to lose face (e.g. corruption).
I buy the whole thing that some cultures give more weight to face-saving than others. I would classify my supposedly western country (Chile) as one that gives it more weight than, for example, Germany. Even then, this just sounds like a kneejerk "you cannot trust these dastardly orientals".
Face saving is a thing in the US, to the point that it's a common plot point prestige TV (e.g most of The Wire). It's an accepted fact in political campaign with spin doctors. The 30K in credit card debt to keep up appearances is also face culture. The hustle culture, etc.
You don't need to be racist, you just can be skeptic of the claims of an autocratic government.