If China had a cheating scandal among their defense personnel, do people think it would be publicized? Of course not. It would be totally hushed and suppressed as being too "embarrassing." But we are more open with this sort of thing.
Every society has cheaters. It's how they are dealt with that makes a difference.
When I was at the USAF Academy, we had an honor code
"I will not lie, cheat, or steal, nor will I tolerate among us those who do."
This means that anyone caught doing any of this is kicked out of school. If I knew my room-mate was cheating, I'd first give him a chance to turn himself in, and if he didn't, I'd do it. We took this code very seriously, but there have still been scandals over the years. It's human nature.
But in general, it worked well. I could easily leave a solid gold watch or even cash lying in a common area, come back in 2 weeks, and it'd still be there. Seriously.
Cadets often turned themselves in, even when there was no chance they'd get caught. "I lied to my commander about the squadron attendance roster." He'd go before an Honor Board, and they'd determine his fate. Sometimes, they'd grant "discretion" which means the cadet can stay. Often, though, they kick him out, despite turning himself in, despite everything.
We were allowed to lie with a device called "tact." You are being served dinner by your commander's wife. "How is the Chicken?"
"Ma'am, this is the worst chicken I've ever eaten. It's dry and tasteless." No, you don't have to do that!