That's sort of exactly the point - correctly or not, many Chinese simply don't see it as an occupation.

They see "policing" Tibet much the same way Americans see the policing that's been going on in Utah lately - internal affairs.

They resent the fact that the west maligns them as oppressors while the CIA has funded the Dalai Lama since long before he became all goody good good and started talking about democracy instead of just fighting to reinstate the feudal (and frankly barbaric) system of old.

It is in the West's interests to keep China as weak as possible. I don't think it is a far fetched conspiracy theory to suspect that at least some of the furor over Tibet is a result of cold-war style CIA meddling.

If I were Chinese, and believed the above wholeheartedly, I would be right pissed off at those protestors who are doing their best to ruin China's chance to host the Olympics.

Imagine how Icelanders would feel if they were hosting Eurovision and all the media coverage was hijacked by Spaniards protesting how we manage our fishing resources. :-P