Playing to the home crowd and annoying the rest of the world. Hey, it worked for Bush a few years ago when he had most Americans believing Saddam was ready to attack the US at any minute. Of course, times have changed and that approach failed the test of time even with the US public who eventually woke up. Hu and his government have a major PR catastrophe with the rest of the world but instead of addressing that, they just keep telling everyone else to go to hell.
China has done an impressive job in recent years of growing their economy but the reality is that the average income in China is still only a few thousand dollars per year so they have a long way to go before they have a middle class on par with the west. If China wants to remain an insular country, great, go that route. With that approach they can watch all of the growth decline and the communist regime can have it's own little world to rule. If they want to be part of the global community, they are going to have to adjust and open up. Whining every day about how mean everyone else is when they're the ones busting heads is hardly a winning approach. If their goal is to scare aware investment, they should continue their current approach. When that happens and the money train ends, this regime will really be clinging on for dear life.
