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I expect the exaggerations are only the difference between what the CCP would like them to be, and the reality of the situation. From my experience and understanding, there is not a cultural expectation of public truth in China similar to what we have in the US. It is assumed that those that are connected to an issue will fish out the truth, and if you want the truth, then you need to do some homework. It seems this is just a fact of life. As a result, there is little genuine indignation when a large falsehood has been exposed. If anything, the indignation is more likely to be suspect.