The Communist Party is doing this because they are losing their grip on power.
Last year there was a huge wave of demonstrations coinciding with the Arab Spring.
In 13 cities, ten’s of thousands protested in the streets. They were shouting slogans like, “Long live democracy. Long live freedom.”, “We want fairness. We want justice.”, and “We want reform. End one-party rule.”
This result in heavy crack down and arrests but dissent is still there.
People now openly voice their demand that the government end corruption.
In December, the entire village of Wukan exploded in protest when corrupt officials tried to steal villagers land.
The residents threw out the police and government officials after a village representative was killed by the authorities.
The situation was only resolved by negotiation and concessions by the government.
And labor strikes occur at greater and greater numbers.
Just last month, 2,000 workers at a Suzuki auto plant walked out.
One of the signs said,
“Everyone come for a strike! Everyone come for an insurrection! Overthrow the dictatorship of the Chinese Communist Party! Overthrow the bureaucratic and privileged clique!
Also, last month, workers at Foxconn, maker of iphone and ipad, walked off their jobs demanding higher wages and safer condition. It’s so bad, Foxconn workers have declared they will commit suicide if their demands are not met.
If the situation doesn’t change and real reforms are intitated, China will explode.
The Communist Party is no closer to “losing its grip on power” than in 1950. Continued trade with them has made them more entrenched than even when Mao was in power. Besides, “counterrevolutionary” bogeymen have always been a constant in such communist states, from Trotsky to Teng Hsiao-p’ing (who eventually took power himself) to the fictional Emmanuel Goldstein . . .