Some claim China numbers are wrong which I doubt as they learned their lesson that it does not get better if they won't tell the truth.
I'm not ready to say China is lying, but:
1. Locking 3500 people on a cruise ship caused rampant spread. Reports indicate rapid spread in prisons. But locking 57 million people in high rise apartment buildings stopped COVID-19 dead in it's tracks? Maybe, but...
2. Locking down 4% of the population for a month is a direct 0.3% hit to annual GDP. A minor blip for a 6% (officially) grower like China. But the ripple effect was far more severe. They can't expand this lockdown. So maybe it's better to turn Hubei into a giant Diamond Princess while other provinces play whack-a-mole like the rest of the world?
3. Even if the national government wants good numbers, are they getting them? Or did cities get the memo that honest reporting will lead to a crippling lockdown?
4. There was a mass pre-lockdown exodus from the Wuhan area. My gut feel is the relatively few who escaped overseas seem to have a much higher infection rate than the million or so who escaped to other places in China.
5. Lockdowns slow the spread of seasonal flu and other illnesses in addition to COVID-19. The overall flow into hospitals (and morgues) might actually decline even if COVID-19 cases were still spiking.
6. Outside of China the prevailing opinion among non-politician epidemiologist types is that we've moved from containment to mitigation. Absent Trump's 'miracle', we're just buying time. Why would they feel this way if China has achieved containment?
None of these arguments convince me China is lying, but I'm starting to lean that way.