Yup thats karma returning full force based on the wheel of sharp weapons.
China has probably smartened up, now they are taking on the mantle of global leadership from the US.
They have learnt to play the game on the world stage, that to use more subtle and high level methods rather than telling the whole world they wrong about China. China has > 1 billion people, Tibetans only six million, If the Vatican is keens on saving souls, better to work with China right? So no dialogue with Dorje Shugden people, will result in no more dialogue with all parties that are within China's sphere of influence.
Plus I do think the demonstrations not once, not twice, persistent ones wherever the CTA brings the Dalai Lama is having a lot of effect. Demonstration is the effect of having no dialogue between Dorje Shugden practitioners and CTA/Dalai Lama. The Dalai Lama would rather have dialogue with non buddhist like the Bon or even previously persecuted Jonang sect than Dorje Shugden, makes no sense to carry on this way.
Tibet wants its freedom, if they truly do, unite the Tibetans and be fair.