Factions. Don't forget the PRC is a party-based state, not a dictatorship in the sense of one-man rule. There are doubtless some in their wierd 'Communist Party' which now admits enterpreneurial capitalists into its membership, who are actually interested in democratization.
Businessmen and Chinese-style fascism(communism) can actually go along quite well. I doubt that those businessmen are interested in human rights, which would include freedom to organize unions.
Somebody overreached in an attempt to make a good PR.