According to the news from the Big Reference and the Epoch Times on January 2, 2001, the Central Politburo of China held a conference on January 2, 2001, discussing the reform of political structure and the Falun Gong issue. At the conference, the Reform Side and the Conservative Side had a fierce confrontation. They did not reach any agreement in the end. In regard to the Media Censure System, the Reform Side insisted it be rescinded gradually, allowing non-governmental organizations to run newspapers so as to make amends for the problem that corrupt officials do not exert adequate supervision over it. The Conservative Side strongly opposed this and refuted citing the former Soviet Union that was overthrown because of its "openness and transparency".

As to the Falun Gong issue, the healthy strength in the Party insisted on collecting the opinions Party-wide, promptly stopping various kinds of violence against the human rights, such as forcing a confession by torture, illegally ransacking people's houses, forcibly administering medicine and injecting nerve-damaging drugs, and gradually creating necessary conditions for officially redressing the mishandled case [about Falun Gong]. The Reform Side held that the crackdown on Falun Gong has caused the internal split of the country in terms of ideological form. Its degree is second only to the dispute over the Vietnam War and Racial Discrimination in the US. They thought it better to rescind the "Notice from the Party that Party members are not allowed to practice Falun Dafa" and the arrest warrant on the founder of Falun Gong without delay, collect the information on the wrong deeds committed by governments at different levels, and make amends for Falun Gong practitioners pursuant to law. While the Conservative Side held that it is improper to discuss the issue of redressing the mishandled case [about Falun Gong] at present. The only thing to do is to find scapegoats to be held accountable for the wrongdoings.

January 2, 2001