The emperor does know

This makes a lot of sense. The issue is the measurement.

The emperor does know - The Economist
How the system rewards repression, in the name of maintaining stability

Key Points:

• The most important measures are maintaining social stability, achieving economic growth and, in many areas, enforcing population controls.
• Cadres sign contracts that spell out their responsibilities. Failure to meet targets can end a cadre’s career.
• Fulfilling them, even if it means trampling laws to do so, can mean career advancement and financial bonuses.