Tibetan Buddhism banned in certain part of China is nothing new. The CHINESE government has banned Tibetan Buddhism....FULL STOP. What I find it interesting is how NOW you see the CHINESE government supporting quite a few monastery especially the ones which practices Shugden in China. They are subsidising road works, making some monasteries into tourist attractions, subsidising construction of their temples, allowing certain high lamas to visit China ie Gangchen Rinpoche, Gaden Trisur, Yongyal Rinpoche and so on. These high lamas have visited China in the last 2 years. Now even the China Premier - Wen Jiabao even gave an audience to the 11th Panchen Lama. Please see this post 
http://www.dorjeshugden.com/forum/index.php?topic=1707.0)
I am not worried at all. There will be more good news. The Gelugpa Monasteries are practicing Shugden in China is getting bigger and stronger.
Actually, the ban on Tibetan Buddhism ended when the cultural revolution ended in China. The cultural destruction on the Tibetans are not as bad as what the CTA wants us to believe as now there are more and more stories coming out of Tibet of mahasiddhas and practitioners. The debates were still kept alive, the lineage unbroken in many monasteries.
China produced their own Panchen Lama who has been trained in the traditional way (sans the Dalai Lama's blessings), and there was a clip of the Panchen Lama undergoing his his Geshe Lharampa degree examinations the traditional way, via debates and he is known to be a very good debater. CCTV 9 has showed the footage of him going through his studies and debates in a monastery.
Even recently there are stories of mahasiddhas who have achieved the illusory body in Tibet right now. Khadro-la came out from Tibet, she was not banned from doing her Dharma practice or whatsoever. China in essence is just trying to get rid of the Dalai Lama's political influence so that they can manage the country properly.
So, before we draw conclusions that China has been cruel and mean to Tibet and they have been destroying the Dharma there, lets really look at that situation. It seems that they have allowed the people there to build a huge statue of Guru Rinpoche too. Supress what again?
PS: im not supporting China, but there's more and more evidence of late that they ARE allowing Buddhism to grow there, especially tibetan.
