http://www.stuff.co.nz/national/education/8662224/Chinese-ch...
http://www.stuff.co.nz/national/education/8662224/Chinese-ch...
The exam mentioned in the article is THE exam. If you fail, that's it for you. You can't re-sit and you can't attend a reputable university. Your choices are the equivalent of technical colleges (few which have any reputation), working in low skill jobs, or (if you have A LOT of money) studying abroad.
Given the circumstances, I think cheating is the sensible thing to do, given their are cheaters, by not cheating yourself you put yourself at a disadvantage.
I agree that right now, given China's recent history and current state of affairs their is widespread corruption and exploitation. If that qualifies as "cultural phenomenon" then I agree, but I don't agree it was always there, and think it is more to do with the mao/deng transition and the massive injection of wealth into china since.