For a sovereign state, any secessionist forces are targets. If such forces are initiated by a minority group, characterized by religious extremism and hostile ideologies, there is only one way any state would handle them.
Li Lin and the Elf Camp belong to a minority group, seen as religiously unorthodox, their ideologies and beliefs are profoundly different from those of humans and beasts. The threat and damage they pose to Charlemagne is far beyond what the fundamentalist terrorists once did, it is almost comparable to what the circumcision-performing cuckoos have done to Palestine.
However, at least those cuckoos have the backing of 'Hawk Sauce' country, in times of crisis, they could always resort to 'growing mushrooms' with their fellows in white caps. The Elf Camp could only rely on the big BOSS personally coming to collect debts and grow mushrooms...