If it were just one guy (probably a Party official) smoking, that's minor, but Chinese airlines: (1) are generally late, (2) allow passengers to stand up and get their carryon even as the plane is landing and taxiing, (3) allow passengers to push each other out of the way when boarding and deplaning, (4) allow use of mobile phones (loudly) during takeoff and flight, (5) seemingly disregard seating assignments, (6) allow pushing and shoving at the gate, etc. Yes, I did see smoking on one of my flights, but it was rare.
I live in China for a number of years and had a LOT of domestic travel. I really wish the high-speed rail was available for my travel (company policy said air only).