I have not travelled to Tibet myself, but have heard many accounts of friends' travels there and seen their photographs. It is impressive, to say the least, how well preserved these monasteries are across the country. Friends relate that these monasteries and other prominent religious buildings receive financial support from the government, who invest to preserve, restore and enhance them. So there seems to be encouragement (though forcibly, in some cases), both for actual practice as well as in the physical set-up and institutions to facilitate practice.
Even if there is resistance towards practice of Shugden within China, it signals that the practice is made readily available to people who DO want to practice - and there are certainly a lot of people in China, with many more from the outside world wanting to go in to visit.