Capitalism fixed China. Trust is a big component of well-functioning capitalism. The cultural revolution killed trust. Therefore, I disagree.
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But how do they do this capitalism thing without trust? For example, in Russia, there is a noticeable lack of trust (sound property rights protection mechanisms are also absent, more or less as in China, I guess) and capitalism is barely working.
There is some trust in china, just not as high as countries like the United States. Less trust is a big impediment to economic transactions, so things still work, but it's more difficult. Technology bridges the trust gap often. It makes easy to verify things faster.
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There are significant other variables that you are not accounting for: 1. Chinese are smarter and harder working 2. China is better positioned to gain from a manufacturing-led development boom because of better ports and proximity to Japan, SK, TW, etc.
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