It is not necessarily relative absence of government that is creating some negative fallout. The same sort of things you mentioned do happen all over China, even in Beijing and Shanghai where government police presence is substantially larger.
Keep in mind that westernization of China over last 30 years should be considered as a brand new phenomenon in historical context. China is still learning. Experimenting with market capitalism ensured China that it would grow at a tremendous pace, but it also resulted in a huge environmental, social and legal errors along the way. But what else would you expect from a country that is just starting to wake up from monarchical and communist despotism for several millennial?
I was preaching the same words you preach now. What changed? There is really, f*in slavery, child work, forced prostitution, gambling additiction + loan sharks and so on. I couldn't believe it until I was there. Now, that I feel connected to the people and the deep culture there, I can't say anymore "give them time". It is time for a change and that change will come. Chinese people themself have enough of it, although I think it will still be 5 or 10 years until they really start to fight.
What you describe and what shocked you is daily reality in most developing countries--poverty is ugly.
During the next 2 years will be the handover of gov't to the next president and it will be up to him where China goes: the way of Brazil and many African countries with a Gini-Index of 70 and above, or a society with more social equality like the US or even Europe.
However, I have become rather pessimistic in the past two years if there is even a chance for the next president to push China towards more equality. Because that would mean paying taxes and rule of law for the rich. And the rich will not like that.
I agree that the next government very likely can't change the inherent problems of the Chinese society. But I think the Chinese youth can. If you look at the Chinese news you see young people rebelling against the system every day and they become more. Also the government is not as strict and well organised as it was many years ago, when their tanks where fighting the student protesters. The Chinese government itself is fat, lazy and far away from the real life situation of most Chinese citizen.
I think the chances are not too low that there will be revolution kind of change. Maybe cultural, maybe not with weapons and that stuff. But the Chinese people know too much about the wealth of their rich comrades, of their big cities and of the western countries.
You ask what changed? You seriously underestimate the kind of China has gone through. China over last 30 years has seen changes that were monumental. Literally, millions and millions of people can now feed themselves with 3 meals a day. China has never been as prosperous as this before, and things are getting better.
Keep in mind that all the horrible things you mentioned are not unique phenomena historically. All those things were there in abundance long before industrialization took place in China. Therefore, these phenomena are not results of industrialization. In fact, more industrialization, more modernization, freer market, removal of notoriously bureaucratic China's communist government regulatory hurdles are what would make China prosperous.
It is not necessarily relative absence of government that is creating some negative fallout. The same sort of things you mentioned do happen all over China, even in Beijing and Shanghai where government police presence is substantially larger.
Keep in mind that westernization of China over last 30 years should be considered as a brand new phenomenon in historical context. China is still learning. Experimenting with market capitalism ensured China that it would grow at a tremendous pace, but it also resulted in a huge environmental, social and legal errors along the way. But what else would you expect from a country that is just starting to wake up from monarchical and communist despotism for several millennial?
All I can say for now is, give it more time.