For me the biggest issue is that the bureaucracy has a lot of free hands in legislation. Each office can push out some regulation to go around the requirement for a proper legislation, which usually takes years.

Also the mindset of deciding for the people instead of deciding by the people is pretty unpopular but people can't do much. The cultural inertia is strong. Whenever there is an issue, people automatically turn to a bigger government. The government tries to manage everything from the top, which creates a huge chain of issues.

This all looks fine when the economy is good and booming, but when not then it's a different story. Basically the people transfer all power to the government in exchange for prosperity. Chinese people are materialistic in heart so a better material life mitigates all other problems. But what if everyone has to sacrifice for the "common" goal set from the top? It's hard to tell.