In the PRC, like many countries, the law is nothing more than a tool wielded by the State to protect its interests. Said interests sometimes, but often don't, align with the needs of the people within the borders of the State.

The actions of the State always align with the needs of those who hold the most power in that State.

It doesn't matter if you follow the law or not if someone powerful decides your existence is inconvenient.

It was all legal before China went and did retroactive legal changes

If everyone followed the law we would never have revolutions, and Europe and America would still have slaves.