The desire to cover up bad news isn’t limited to socialist countries–it’s a universal trait. It happens more often in China, however, because:
1. The Chinese government obviously has more power to limit communications than most governments, including ours;
2. Local officials are evaluated based on their ability to avoid trouble, so they have every reason to try and keep things quiet as long as possible; and
3. When you have arbitrary one man government, no one wants to get too far ahead of the leadership, because it has obvious consequences.
Unfortunately for the Chinese, even with the government’s control of the internet, bad news has a way of getting out, and even being embellished. Hence, the depressingly familiar cycle of a failed coverup, followed by harsh measures that come too late.
What we are seeing now is the rule, not an aberration. It will happen again as long as the Chinese system remains as opaque as it is today.