China Hand seems to think the Falun Gong is truly a threat to the Commies. I can see that the government might think so, but it's sheer paranoia. It's just another example of the government afraid of any independent force. (Like the rule of law: see below.)
Jason Dean in the Far Eastern Economic Review writes that:
"Mainland China, which banned the Falun Gong in 1999 and has since smothered the group, said followers on Taiwan hacked into the Chinese state-owned satellite" from Taiwan. "To Beijing, the sabotage suggested a possible union of two of its biggest b�tes noires: the outlawed 'evil cult' and the self-ruled democracy that defies China's claims of sovereignty. But contrary to its reputation elsewhere, Falun Gong isn't known for agitating in Taiwan. Instead, in what is the last part of greater China where it can function completely unhindered, Falun Gong thrives visibly but quietly--raising the unanswerable question of whether it might have done so in China, too, had it been ignored by the authorities from the start. 'As far as I can tell there is no political aspect to them in Taiwan, and I've been looking,' says one Western diplomat."