China Acting Stupidly

China boycotts the World Games Opening Ceremony in Taipei
China arrests Australian employees, after a take-over deal is cancelled.

Bizarrely, this is all happening at the same time as another inexplicable act: China agrees to personal sanctions against individual North Korean government officials.

Who knows what is happening here. Perhaps the Australian arrests are a result of guanxi corruption, and the Taipei boycott was how the government looks tough before working with Washington on North Korea. Or maybe something else. Certainly the first two stories are as disappointing as the third one is encouraging.

Update: For a different perspective, see this post that misses the point.

China has engaged in a series of lawfare attacks against Rio Tinto after a business deal with Rio Tinto went south. First talk about a brand new anti-monopoly which would have been aimed at Rio Tinto, now this sudden ‘espionage’ arrests of Rio Tinto execs, etc.

Anyone wanting to do business with China now knows that if China does not get the price it wants, arrests might follow.

China is current a system with a rule-by-law, but not any rule-of-law. The laws are applied selectively against those who displease powerful interests in business and government (largely, the same thing).