While there might be a problem with fraud in Uber use in China, is it any worse than in any other country? There is an implicit racism in all these stories that hit the media decrying 'Chinese Fraud and Duplicity'. I am sure there is plenty, as totalitarian governments have been shown to increase dishonesty in their populations, but is it really worse than any other developing country or country lacking a government?
Granted, the story will 'sell more papers' than a similar story about Uber being defrauded by teenage stoners from Kansas. China is a competing economic power with the US and EU, and as a result it seems to being demonized because Chinese people didn't have the common sense to be born with white skin. This constant barrage of stories about 'Chinese' dishonesty paints an image of them as being inscrutable and untrustworthy as a race.
Think of it as a Prisoners Dilemma applied to a market economy. The Prisoners Dilemma generally means people cooperate within their group (optimal with repeated interactions) but defect with outsiders (optimal for 1-off interactions).
The West has had market economies for a very long time, we've figured that cooperating even with strangers is the best strategy at a cultural level so as a culture we've put in a lot of effort into telling people they should conduct business honestly even with strangers and not defect.
In China this kind of economy is a lot newer so people are following the default rule, cooperate in your group and defect outside. They'll change over eventually but I think it is a true phenomena that the Chinese won't feel the same pressure to cooperate with strangers.