Yep, it's scary. I'm a bit of a Chinese culture buff, and am studying abroad in the spring, in the rural south. (I'll go dark on the forums during that time, btw)
The video summarizes it up nicely. It has nothing to do with communism, in fact China isn't very communist at all, despite what the CPC might tell you (In my opinion, China is closer to fascist than it is to capitalist.). It's about cutting people like Ai Weiwei and Chen Guangcheng off from their social media followings. Online communities like ours here are where most dissidents preach. The internet opened up a whole new venue for people to speak out publicly, yet anonymously, in the last decade or so, and China has been trying to find ways to shut it down ever since. They pay poor people 50 cents for every pro-CPC comment they post on a political thread. They have internet censors that go around deleting comments, banning IPs, and
producing hilarious musical acts to raise support for their cause.
There are keywords such as 'Tiananmen' and 'Liu Xiaobo' that can get posters banned automatically, so the Chinese people come up with some pretty clever ways to discuss taboo subjects without being caught. 'June 4th' is a banned word, since that was the day of the Tiananmen Square Massacre, so forumers discuss 'May 35th' instead. Since Chinese is a tonal language, there are a plethora of homonyms for whatever you want to say, that sound the same but are written differently. 'Censorship' is "river crab', and 'Grass mud horse over the middle' sounds exactly like "Fuck your mother, CPC." The computers don't pick up on it. It's fun.
The sesame score is probably going to be devestating to public figures in open opposition of the CPC, but through anonymity and plain old ingenuity, the dissident internet subcultures will probably manage to keep evading the censors for a while longer. If you made it all the way through this post, and you're still interested, Google Ai Weiwei. He invented 'Grass mud horse', and has stuck it to the Chinese government in plenty of other hilarious ways over the years.