Richard at the Peking Duck points to an item of interest. While I could never see the Communist Party of China making peace with the FLG sect, it’s worth noting that some  are realizing what a tremendous waste of resources the state has been using to persecute them.:

July 22 will mark the sixth anniversary of former president Jiang Zemin’s decision to outlaw the movement in 1999. It was accused of causing its followers to commit murder and suicide, and of mounting the most serious threat to the central government since the 1989 student protests.
However, more mainland academics and officials have questioned the wisdom of using so many government resources and so much money to target the movement, which mixes meditation with Buddhism, Chinese mysticism and exercise.
They have urged the government to relax the crackdown and direct attention and resources to more urgent issues, such as law and order, and the fight against terrorism.