Perhaps you're confused that the normal system of laws is still operating? That's just the nature of dictatorship in a large country. The dictator only has so much time in the day, and if he has to delegate anyway he might as well use the preexisting courts and civil servants. He just has to put supervisors on top who can credibly threaten to invoke his wrath if people step too far out of line.
A) Boundary testing. Small bites end up being large portions after enough are taken.
B) If I shit in 10 gallons of chocolate pudding, would you want to eat a bite of that pudding?
Regardless of what you think about the government, that wasn’t a statement in the above. The statement was about tech companies. So it wasn’t clear.