now ccp can't relax on dual citizenship because of huge inequality, poor people are really angry/jealous at overseas chinese. however on execution of the law they do can relax.
the key:
as long as overseas chinese don't harm china's interest, ignore or play dumb on dual citizenship, just like gu's situation:
if you hold chinese passport, chian will presume you have renounced other citizenship, however whether you really do it or not, china don't care because it's between you and other countries. as long as you follow china law, enter exit china using china passport, pay taxes. enough!
this way it will be similar to american way which on paper recognize dual one but in reality only acknowledge your amrican one, meaning one can hardly use the other citizenship to argue against uncle sam on any dispute, especially tax, see how many rich guys give up american citizenship.
people in xys usually travel a lot in the world, which country is like china in doing so many things for other nations and get nothing good out of it:
when a chinese is leaving china, why china check so strictly to make sure you are legal to visit other nations? american doesn't thank china for that, caanda, japan, neither.
the normal way is enter china, check hard; leave, who cares? like the us, and most other nations.
ccp should not care what overseas chinese do with the other countries, that's between them. as long as they follw china law, no harm to china, if you claim to be chinese citizen, you should be treated only as a chinese. if later you get disputes with china and would like to claim other citizenship to argue: sorry, not working!