I think it's cultural and lack of technological awareness
1) People aren't raised with a mind to combat discrimination. Despite recognizing and celebrate some 50+ ethnic groups, the majority of Chinese are Han and look like each other. There are some laws in place to protect against discrimination against certain classes (e.g. Gender/Ethnicity) but they're not strongly enforced. The legal system simply isn't there for individual plaintiffs to succeed against corporations or government.
2) Chinese have culturally accepted authoritarian rulers as "heaven's mandate". As long as people can be fed, clothed, have a roof over their heads and even prosper, then the ruler continues to carry "heaven's mandate", regardless of what Machiavellian means by which the ruler achieves prosperity for the majority. If the government has to read my letters in order to find evil schemers to keep me safe then so be it. But if the government did all these things and the safety/prosperity of significant communities are still constantly at risk, then the ruler has lost the heaven's mandate, and it's time for a revolution to install a new ruler.
3) Chinese people are raised on family, piety, and harmony, not individualism. Many place a sense of family/community acceptance above individual will. I think most are protective of the very private -- maybe on the class of secrets -- what I say to my friends or my own journals as private, but there are very few that even think that the metadata about how they carry out their lives should be considered private. Ultimately I think most people's mindset is that if I went to a restaurant and ordered food and they kept a record that I went there and ordered XYZ off the menu then it's no longer a secret. People haven't really come around to the power of what can be done when enough information has been gathered by simply going about your everyday business.