China's fight with CNN is part of a broader effort to challenge those who question its response to last month's protests in Tibet or criticize the Olympic torch relay, which traveled Thursday through New Delhi under heavy guard on its way ultimately to Beijing.
—China Spurns Apology, Keeps Pressure on CNN - washingtonpost.com
There's a great example of how free the Chinese media is – no word of protest against the regime is to be tolerated. Granted, CNN certainly editorialized in their coverage – cropping a photo to eliminate protestors.
Nonetheless, this latest 'offense' took place on the show The Situation Room which is a FOX inspired show on CNN. That is to say, it's full of opinions and not facts.
The Chinese media seems to make a habit of taking a bit of truth (usually a rightful complaint) and spinning to the point where it's unrecognizable.