Mis-information (or lies, whatever you prefer) is as much in practice in many democracies as it is in authoritarian regimes. There is purely too many examples to quote.
The few friends I have in China never discuss politics, nor do I ever pursue a conversation about politics. Take from that what you like, but the overall impression I get is that they are more interested in getting ahead in life than worrying about repression. Our conversations are always about things that any friend would have with you in normal day to day lives. How is buisness, whats your new appartment like etc.. etc.. If you do not rock the boat, you won't get wet feet. Just like in any country. China is changing rapidly and no one opinion will be able to answer what direction that is, without offending one group or another.
America for example exports hate sites on the internet, I sure don't like it, but hey, whatever suits them I guess. In fact, one hate site from America is one of New Zealands most popular web pages and is politically motivated. It seeks to sway peoples political direction to what can only be described as bigoted and devisive. Go freedom!
I make this point because it seems many people posting in this thread have a very blinkered attitude or merely have an agenda. Something about throwing stones in glass houses anyway