Blame the Brits, blame the French. All these stupid visa, work permit restrictions are solely as a result of the performances in London and Paris with the Olympic torch. Up till then any terrorist threat to Beijing was limited to Falong Gung or other dissatisfied minorities. Now they have developed a phobia that anybody, asian or western, wants to get into the country so that they can make a big statement, the more violent the better, during the Olympic Games. The ultimate would be to fly a fully loaded airliner into the Olympic stadium during the opening ceremony. They have already covered that.
My experiences with the Chinese medical and licencing departments has always found them more than helpful, it all depends on how you talk to them.
There is one simple rule for ex-pat pilots in China. If they like you and want you, you fly. If they don't. you don't.