> Americans think China is literally committing a Holocaust right now
Yes, but they aren't exactly unaware that China's official position is that they are not, and the awareness of this official position doesn't come through random minor internet sites reporting “official” accounts machine translated after being received from anonymous friends who got release that were authorized by Beijing.
Getting the official story heard loudly and clearly and getting it believed are too very different goals.
> Besides, there is a strong explanation for why Beijing didn't broadcast this: they don't want to inflame tensions, especially in the runup to the Olympics.
Yes, that's a very plausible reason why, even if this highly improbable story were true, it wouldn't be China's official story right now.
It's not, however, even a remotely plausible reason why it would be the official story and simultaneously completely absent from official media and yet still authorized for release via the channel supposedly used here.