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I find very little sense in this conflict. It seems that the Chinese have very little to gain from their political suppression, but for some reason, don't want to implement democracy just yet. Given the rapid economic growth that they have been experiencing in recent times, the current government would almost certainly win a fair, competitive election hands down.
Thus they would lose nothing by conducting a fair election and eliminating political repression, and they would improve relations with democratic governments around the world. They have something they could gain at little or no cost.
The only thing that I can think of is that we are doing a lousy job of promoting democracy in the country. Perhaps our leaders are making it look as if they would be caving in to Western power by implementing democracy. Thus they must maintain their current regime in order to save face. The people of China are proud and nationalistic, just like people elsewhere. They want to be proud to be Chinese. If the government of China looks like it is subordinating the country to Western influence, this might make the country look week to the Chinese people. Paradoxically, the Chinese government might be concerned that implementing popularly elected government at a national level would render the regime less popular.
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