Honest question... is there a difference between the Chinese government and the Chinese airlines? I know they're not literally led by the government, but I was under the impression the government still wielded disproportionate control over industry in Chine (relative to what we expect in the West).

I'd have thought the UK government [and others in The West] had the ability to legally compel airlines not to fly particular models of aircraft?

If not, then the Chinese system would appear to be superior as safety can trump commercial considerations then.

FAA certainly can do so. Either by decertifying a pane, or issuing various air worthiness directives or other instructions.

Nah if you seriously think so you need to work a bit more on your mental models and probably try to get rid of the simplistic propaganda that you've read. All modern industries are subject to heavy regulations and in many cases the western regulatory system is still sounder than the Chinese one. China was more or less in a wild growth phase of capitalism in the last two decades. Now its regulators are catching up.

It's unusual for airlines to announce that they are grounding planes, but countries do it once in a while.

It would be a very suspect thing.