Huh, a single guy having all the power and changing the fundamental rules of the game (aka constitution or however it's called in China)? Not a red flag?
If it was democratic, disagreeing with the government wouldn't send you to jail. Try walking in Shanghai with a sign saying "the government is corrupt" and see how long you last.
As for the quotes - according to Chinese their system is democratic. According to Americans theirs is. From my European point of view both are somewhat flawed democracies, China because despite advancing surprisingly quickly they are not there yet when it comes to transparency and human rights, and US because its political system is essentially just institutionalized corruption. That and indirect voting.
Yes it's normal for the police to ensure a demonstration goes peacefully. It is a fundamental right in many countries to demonstrate. In China it is not. What country do _you_ leave in, where demonstrating is not allowed?