You have a misunderstanding of how China's government operates. It does not matter how much stake the government holds, companies just cannot say no to the government's request. Otherwise you will be disappeared. See Alibaba for example.
Government is bad except when it comes to brutal subjugation of out-groups I don't like, while the in-group gets protected and treated with kid gloves by the same.
Unfortunately most of them are the dupes not the protected class they think they are - "they're hurting the wrong people" summed it up when it was uttered..
Too lazy to look up who said it, but there's a quote I like that goes something like "conservative seeks to have an in group who the law protects but does not bind, and an outgroup who the law binds but not protects"