...and the one thing the Chinese government values above all else is its own power. More than economic prosperity, more than public health, more than national prestige - the Chinese government treasures its own continuous reign.

Hear hear. This is precisely the issue. The business model on which the recording industry (not to mention the film and TV industries) is based is already obsolete. Their model relies upon being able to maintain almost perfect control over distribution of their product. That control used to be based on everyday consumers LACKING the means to distribute copies themselves. When virtually nobody had the means to press vinyl LPs, and cassette tapes sounded mostly crappy - their business model worked well. In retrospect, mere radio (wireless, packaging-free, nearly cost-free delivery of their product) ought to have alerted them nearly a century ago to just how tenuous this business model was... Now that their fundamental assumption has become invalid, they seek to legislate an artificial 'propping up' of their existing, massive-profit model. It's akin to requiring automobile owners to buy at least one buggy whip per car, per year, lest the whip-makers suffer a loss of profit...