You're not wrong, but I believe the permissive system is much more robust than the restrictive system. However, everything I've ever read about China makes me realize that it is awesomely huge and that I have no idea what is actually required to keep the "Middle Kingdom" functioning.
Even so, I think the CCP is making a big mistake with these camps.
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I wonder if the techno-fascist system might actually turn out to be more stable than the techno-democratic. (I don't like that but I've read enough sci-fi to be willing to consider it.)
Certainly the "fake news" attack is so effective precisely because so much of Western "free" media actually IS fake news. (I read Chomsky at an impressionable age, to me the mainstream media in America has always had a blindingly obvious blackout policy for anything too embarrassing.)
In any event, if the CCP can revive the Silk Road and partner with the nations of Africa, the Space Age may be Communist after all.