My take is China lets one or two go to set an example to deny they are an evil Communist empire.
If things start imploding over there, things will change.
Do you have any more information on the violent outbreaks in the Chinese village between Chinese-Muslims and the other ethnic religous Chinese? I saw one story and hear one blurb on the radio and that is it.
He says China should stop building anti-American ties with France or Russia and instead ally with the US to defend against Islamic jihad. He knows Huntington well enough to see that if the US (and Western Judeo-Christian culture) is destroyed, the next target of the jihadi movement would be Asian Confucian culture and prime target China.
And of course Tao also says China should start democratizing so as to improve relations with the US.