I thought the censorship was more for PR reasons (i.e. you're allowed to talk to the CPC but you're not allowed to talk to the press), but fair enough if not. fwiw, the USA also has laws forbidding federal administrators and workers at regulatory agencies from talking to the press without permission, primarily because there's a history of government employees trying to sabotage the next presidency after a party switch.
Regarding the virulence of the disease, I think that's one of those captain hindsight things, like how Ronald Reagan is somehow supposed to be responsible for every single person that died of AIDS according to the homosexual left. Unless it is discovered that Xi or others on top intentionally suppressed reports showing the danger of the virus (and admittedly it is unlikely for whistleblowers to reveal that even if true), it seems plausible that they just underestimated the virus, especially if the two-week-incubation-time thing is legit. Something which basically every government in the world was doing.