well, as far as i can remember, (now i haven't been back in 2 years), it's fine to report those as long as you don't go "therefore, we need to have democracy" at the end



.
but seriously, I agree with you that a lot of China's problems can be solved with free press...i.e. corruption. I mean who catches corruption better than free-lance reporters. If Hu is really worried about it, he should let the public do the job of his anti-corruption squad, who is itself a bunch of corrupted goons.
but I think, in his mind, keeping himself and his buddies in power is still the highest pirority, that's why anything negative about the regime is repressed in the media.
truly, i thought Hu wuoldn't be like this when he first came in power, guess he didn't turn out to be more than another China-educated loyal commie...