[Tainan]

"The more they struggle to stop the problems the worse they look."

In the eyes of the world, yes. However in the eyes of the party hard-core and the wavering populace seeking to follow the PRC drumbeat, this merely demonstrates how the strength of the party can overcome such 'rebels' as the Tibetans.
Just look at the recent demonstrations in Toronto to see what I'm referring to.
For domestic consumption. And thats is the target audience...1.3 or so billion in the domestic audience. Keep 'em scared with displays of power. Tell them it is for their 'own good' and for the good of China.

[TigersEye]

That is the reaction of panic. China can act like it lives in a vacuum but ultimately it has to deal with the world.