I see that as the long-term-goal: it's quite a cliche term by now, but they are really creating sheeple, slowly breeding out the rebelliousness and independent thought to be replaced by docile, obedient worshippers of the government.
I dunno, the culture also has a strong basis of surface following the rules while getting around them in every way you can, typically way beyond a typical westerner.
I think people shouldn't underestimate the way people counter react to rules they do not like or agree with on some level.
It's the one reason why I have hope that Chinese world domination attempts will fall flat. They will just be out thought eventually if they continue down this road.