by the way - another serious problem I see along the same lines - law enforcement here isn't really good or prepared to deal with the bad guys.

This is my one main issue with China-lack of the rule of law. The police really don't give a shit, especially when it comes to foreigners. That guy who went mad with the sword would have been shot or tazered in the USA, no question, yet he was allowed to hang around there and NOONE, bystanders included, did ANYTHING.