Technically, it is rebirth in Buddhism, not reincarnation. And yes, there is a difference. It isn't the soul that is reborn either, but the Karma. Another big difference.
As it says, this is clearly the first stage of taking over the people's beliefs. The second, I imagine, will be the disappearance of Mr Lama himself. And with a puppet Dalai Lama in place the Chinese Government can control Tibetan Buddhists via the laws and their faith.
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