The problem with being a totalitarian state is that the state is to blame for all failures (that cannot be blamed on foreign enemies or domestic traitors). It is kind of like maintaining a modern mandate of heaven. CCP learned that pretending there is no problem wasn't working, so now CCP must go draconian. It's not a huge problem for CCP if they have a lot of deaths, but it is a huge problem if they are seen as being to blame for things getting out of control because they under reacted. So, they will clamp down. I bet they are under-reporting, though I don't know how much.
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