Absolutely I'm not agree with understanding that the basic teachings of Confucianism stress the importance of education for moral development of the individual so that the state can be governed by moral virtue rather than by the use of coercive laws.

The basic teachings of Confucianism for government are developed trias political laws system (have been implement fist time at western) and developed rules/ laws. Therefore confucius says : without rules/ laws nothing needs to be look after, without rules/ laws nothing need to be inspect, without rules/ laws nothing need to be take actions.
Many section of lunyu also explained important of laws.
example :
Lunyu V.21. Aphorism says, 'Policeman (Ning Wu Tzu), The State have been well implemented laws (Dao) is clever, The State did not know how to implement laws is stupid. Able to understand may achieve goal, stay stupid would be impossible achieve goal too'
Lunyu V.27. Aphorism says, 'The common judge keep continuous . I am not yet able to see this experience, About their
implementation of judge philosophy'.
Lunyu VIII.1. The protector (Wei Zi) act as help provider,
The prosecutor (Ji Zi) act as find out a guilty, The judge (Bi Can) have an authority to admonish as well as impassable.
Confucius says, 'Will be start flourishing if have this three peacemaker'.