The Chinese national government has a surplus, but the local and provincial governments are running massive deficits and have been for a while. I wouldn't be surprised if a lot of these actions are to free up cash for the necessary wealth transfer to keep the popping of the property bubble from becoming too catastrophic to the retiring population.

That makes no sense when the CPC can already create as many Yuan as it pleases out of thin air.

Why did you put taxes in quotation?