If China is understating the damage from the virus they are only doing it by a constant factor at best. You cannot hide an exponentially growing epidemic, no matter how hard you try. That's just how it is on this bitch of a function.
Western propaganda has trained its people to think the Chinese communist party is as stupid as it is authoritarian. Quick quiz, if you don't know who Li Keqiang is then you more likely than not treat the CCP as a black box controlled by Winnie the Pooh.