..."Don't you really belong to the Yellow Scarves, Zhang Jue and his ilk?"...
..."The man is a sorcerer," Sun Ce replied. "He uses his arts to mislead the multitude and must be eliminated."...--From the Romance of the Three Kingdoms--
The Yellow Scarves, like the Red Eyebrows, and the Boxers, were groups responsible for great upheaval and revolution in Chinese history, and they all had mystical ties. So it's no wonder the Chinese government moved to repress Falun Gong, a modern day society with mystical practices.
Compare China's reaction to America's, where groups like the Tea Party, modeled after a revolutionary group, go about their business with only rhetorical government interference.