There is not a lot of things that make sense in China, if the government decides on a rule, then that is the rule, no matter how arbitrary it may be.

As for them being embarrassed, have you seen all the other crap the government does? If they are not embarrassed by that, then they are unlikely to be embarrassed by this. I spent a few years in China, and one of the reasons I left was their ridiculous government and stupid rules.