The Chinese are constantly brainwashed to believe that yes, it's true, China is a dictatorship and other countries aren't (this fact cannot be totally hidden no matter how much their firewall tries to block keywords like 'democracy') ... but that's not really a problem and democracy vs dictatorship are just two different styles with neither being better than the other. China has dictatorship and America has democracy but that's fine because China's needs are different, etc.
Any student of international history knows full well that this viewpoint is complete crap. The track record of totalitarian dictatorships is awful. But don't underestimate the power of total information control to warp and distort people's minds. I've encountered a Chinese person who believed they are well educated and understood the West well, and then came out with ridiculous statements like "people in the west have to wait a week for emergency medical care" as justification for why a "paternal" government is not so bad really.
The local perspective of Chinese people is essentially worthless for judging what's actually going on in China. They are fed a constant diet of lies, and unlike in other parts of the world their access to organised debunking of those lies is severely restricted. They can't even judge what's going on by measuring the opinion of those around them because the government subtly distorts that too (as seen by this article).