Vatican City of China

so I'm watching the Movie "The Last Emperor" and the movie says that even after the Republic the Emperor was aloud to stay in the Forbidden City, in one seen (when the boy-king finds out about the republic) "you are always Emperor in the Forbidden City, but not outside it" life inside the Forbidden City seems to have gone on like nothing happened very Versailles in 1789, first off is this true? and second could this state of being go on up till today?
 
If he keeps his nose down and vehemently denounces anyone trying to include him in a plot, he could survive in a Nationalist China. If China still goes communist though, he's going to lose those privelages.
 
This is different

I expected this thread to be about the status of Tibet and the Dalai Lama in a victorious republican China.

On the topic at hand though, Mount Athos might be a better but still imprecise analogue. If Puyi controls only the Forbidden City and is surrounded on all sides by the Republic of China, then he has next to no relevance to the world beyond, unlike Vatican City and the Pontiff.
 
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