China as a civilization takes the notion of a merit based on examinations very seriously. They pioneered this system hundreds of years before anywhere else in the world.
Cheating may exist but in terms of valuing meritocracy China has it as deeply ingrained as the west.
On paper, yes, China takes official examination rather seriously. In realty, a saying in China goes: as long as there are exams, there are cheaters.
An ancient Chinese source estimates that 20% to 30% participants of imperial exams are imposters.
Endless examples of high ranking officials pave way for their descendants to succeed as top performers. A renown prime minister invited the chief examiner to his library, where he had removed all reading materials except a copy of an essay his son would write for the upcoming exam. The chief examiner was left waiting forever, so he was forced to read the only reading material within reach. When he later read it again as part of national exam, he recognized it immediately and made the the son of the prime minister NO. 1. This only came out because the emperor did not want PM's family become too powerful, but merely demoted the son from NO. 1 to NO. 3.
Not unlike elite institutions in the West, publicly the imperial exam system was lauded but a system of "donation" co-existed to fill official posts. This is a legal way to buy one's way into officialdom. "Legacy" entry was also available, not unlike today's system in China or elsewhere. Human nature prevails everywhere.
Cheating is also deeply ingrained in the culture, though. Much like it is in the US entrepreneurial culture (not just VC backed companies and fortune 500s, but mom and pop businesses).
Old history is one thing, but the whole country being run as a corporation for the past 70 years is another.
Cheating may exist but in terms of valuing meritocracy China has it as deeply ingrained as the west.