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China has a pretty strict policy about not allowing anything that is anti-social and can be used to create mass unrest. A generative AI that can produce millions of fake news stories about political leaders is one of those anti-social things. It was one of the reasons OpenAI was so terrified of the possibilities of what they figured out. China just made it policy instead of sitting idly by whole bad actors automated incendiary publishing.
The Chinese government literally has a 95.5% approval rating as researched by Harvard University over 15 years. The party is not terribly worried about criticism. In fact, because the party is structured with a bunch of internal factions, they are constantly experiencing criticism.