"It is odd how protests over an issue are tolerated by the Chinese government. It is the same with taxi strikes and other protests over economic issues."
This is the only outlet they have since they don't have a representative gov't elected by the people. It's the same way they show their displeasure in every 3rd-world country which is either authoritarian or corrupt. The illegal immigrant protests in the US were sparked by the same thought process since that's what they do in Latin American when they are unhappy. But they caused a backlash instead of a positive response as the immigrants expected.
Yes, you are correct. It is fun in China to watch how much verbal abuse a Chinese policeman will take from someone he is writing a ticket to. It is like they have been told to let them vent.
In the U.S. the cops would never put up with that much verbal abuse - although I am sure the U.S. cops put up with a lot.