PR China Without Substantial Religious Oppression?

I have heard it said as the country loosens up it will eventually be both the largest Christian and largest muslim country in the world, both becomming substantially bigger than THE PARTY. Indeed it must be seriously worrying THE PARTY at the moment, given that they have so severely clamped down on one other mass participation movement - the Falun Gong! A seemingly more harmless organisation it would be hard to find, yet its members have become involuntary organ donors for wealthy Chinese at home and abroad after their executions!
PRC at the moment has a state run catholic church which is totally unrecognised by Rome and I would say that other Christians are facing some trauma to say the least! What if the PRC traditionally had the attitude towards religion that prevailed in some Eastern European countries tolerance up to a point! Of course it would have to apply to Tibet also post invasion!
 
Tibet was a fuedalistic theocracy who would take children at birth to be their leaders. One of the Lamas recently renounced his apparent role. Anyways, I am not so sure how to deal with them.
 
In the case of Falun Gong, I think it would've actually lessened some of the societal problems that plague China today had the Party not banned them, since the group attracted tens of millions, forming a sort of solidarity that would've actually made society more stable. That the group teaches "truth, compassion, and tolerance" and was respected even by many a CCP member doesn't hurt. The problem was that the Party misunderstood the whole thing as a possible threat to their power (despite FLG people behaving better than ordinary folk), so they made moves against it, and after a couple of spontaneous gatherings by FLG members to protest this, the government decided it was time for a crackdown.

I don't know as many details about the Christians, Muslims or Tibetans, but it would seem that they also suffer the same plight as Falun Gong, despite not posing much of an actual political, if at all, except in the case of Tibet (which is still unlikely). In my view, most of the "disorder" the CCP attributes to all the oppressed religious groups are caused by the CCP's aggressive eagerness to control them (there is a puppet Church that recognizes the will of the Party), leading to blowback.

With the way the CCP evolved in the Chinese Civil war and under Mao, it's unlikely IMO to see the Party tolerating any kind of group that isn't under its control; perhaps you'd have to simply diminish the overarching presence of the CCP (pulling a glasnost); but this could lead to a very, very different China in general.

And if the CCP truly gave religious freedom, let's saying starting in the 90s, I think it would be a good thing not just from a human rights perspective but also from the angle of creating a stable society. Allowing freedom of religion would ease a lot of people's stress, and probably help improve class relations. But unfortunately, the CCP's habits and ideological basis didn't allow for that.
 
Communism has never gotten along well with religion and I rather doubt PRC could somehow manage it.
 
I see the authorities clamped down severely on some Christians, not belonging to state approved sham churches over Easter and are getting even more severe on disidents lately including the designer of the olympic stadium, whom they have seriously tortured in the past. I suspect muslims there will be in for a harder time also. Is all this down to fears of the current Middle Eastern revolution spreading?
 
Had the Chinese allowed more leeway to the "Three-Self" movement, Protestantism in China would be doing better. They could do the same to Catholics and Orthodox by allowing a bit more leeway to them.
One interesting PoD I thought of was Eric Liddell working with the PRC. While he was a Christian missionary, he is still honored in the PRC to a small extent.
 
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