The only difference between white hat and black hat hackers are ethics.
And the Chinese Government knows all about ethics now, don't they?
China is apparently cracking down on white-hats, with local reports saying the founder of a 5,000-strong ethical hacker community has been arrested. The reports first emerged on Chinese-language site Caixinwang and were picked up by the Hong Kong Free Press (HKFP). The latter outlet report names Fang Xaiodun, founder of a …
Since all the BIG companies in China are owned either directly by the government, the party, or by the PLA, I would tend to agree.
My 2nd trip to China, I stayed in the most highly recommended business hotel in the city - the translation of the hotel name was :-
"The Peoples Liberations Army Hotel and Supply Depot"
(no joke)
It could be any of the explanations/guesses posted here (I'm sure that there are more to come) or it could be as simple as Fang Xaiodun pissing off someone in local government because his sister refused to go out with their relative.
Western explanations often don't make any sense in China.