Lip-synch fine for Chinese stars

Two Chinese pop singers fall foul of a lip-synching ban, facing fines of up to $12,000 (?7,400) for allegedly miming at a show.
BBC News - Chinese pop stars face $12,000 lip-synching fine

So, what do people actually think about this? Personally I'm inclined to think (in my crusty way) that it's a good thing in general terms for music and the fans, but.. well... I mean China will probably end up making hits and stuff if it's recording industry has to employ musicians that can actually play. How can we in the west compete?!?!