China is implementing a law that requires state permission for reincarnation.
It appears that this is all a cunning plan * by the Chinese government to game the system for finding a successor to the Dali Lama when he dies.
Then again, it could just be bureaucratic bloody-mindedness, something the Chinese quite literally invented over 3000 years ago.
*A plan so cunning you could put a tail on it and call it a weasel!