They are own goaling their economy with these counter productive pencil pusher jobs that provide zero or negative input to the economy.
Real estate crisis, reduction of jobs especially in the younger population, lack of investment from overseas because of zero covid for too long forcing companies to move supply chains and that's before picking a fight with everyone causing uncertainty which makes it less investable.
Cutting down the "private" sector which provided the majority of the jobs because that would threaten pooh bear.
It'll make China weaker in the long run, but the people in charge won't care, they'll be long dead before then. All the people in the top powers are all multi billionaires, even if they lost 95 percent of their wealth they would still live extremely comfortably.
As for the general populace, I like to use the Kim Jong Un anology - a fat man within a nation of skinny men. Not really of importance to the ruling elite.