than U.S.. Especially China's social security system/welfare system is still under developed, not well established.
I have mentioned this on this board a few times. China always view unemployment as a political issues and view it as the biggest cause of political and social instability. Their whole economy is built on this view that let more people work. That's why many exports, such steel....China's business barely make profits from them. But these business can allow people employed. For China it's the mission completed.
Why China view unemployment as a political issues? It went back to 1989 Tiananmen square. Chinese government learned a big and important lesson from their first reform that resulted in unemployment between 1985- 1989 which is the first time they had unemployment since 1949. Chinese gov learned that Jobless/esperate people can do crazy things. That's a big lesson to them.
This word Smith's assumption that Chinese can take more pain, mostly true though (especially on old Chinese), is purely from stereotype, NOT from his understanding of China's political reality.
Link: https://forum.uhnd.com/forum/index.php?action=display&forumid=2&msgid=471780