I think this system is pretty nice in lots of ways because it lets local representatives focus on local things, while high level representatives can focus on broad national interests. It also means peoples votes are always extremely important and you're going to be quite 'close' (literally and figuratively) to your representative. Of course the obvious downside is that in China you don't even get to directly vote for the President, but on the other hand - that is similar to many parliamentary systems used throughout Europe. Anyhow, it's an interesting system! Our first past the post district based system is completely broken and dysfunctional, but the people most benefited from it are the only ones who could fix it, so it's not going anywhere anytime soon. But it's fun to at least consider alternatives!
Technically, freedom of speech, religion, press is guaranteed in the Chinese constitution. But China is not a rule of law country so these rights are not enforced in any manner beyond how the government sees fit.
They are a self described democratic dictatorship with a system that openly and voluntarily chooses to sacrifice individual liberty and freedom for what they see as the collective good. That is their right as a sovereign power, but it is not a system I would like to live under. And any movement in this sort of direction is something that I think should be actively opposed.
[1] - http://www.npc.gov.cn/zgrdw/englishnpc/Constitution/node_282...