Rule #1: Nobody tells america what to do.
Rule #2: America tells you what to do.
Any politician worth their salt would've realised this from the start. Which is also why China chooses not to play this game and engaging only when necessary.
Can't lose if you don't play.
Rudd had a softer stance on China back then precisely because he was OZ PM and
. Studying chinese literature, as you rightly pointed out, was an added bonus that positioned him well as the perfect mediator for US-China relations. This is why I think he appealed to both Westerners and Asians alike. He genuinely tried to balance the needs of both parties.
Now that he's no longer in office however, he finds himself with a new pair of shackles in place of his old ones - bestowed the crown as prez/CEO of yet another of those echo chambers masquerading as think-tanks (Asia Society). This means toeing the party line and regurgitating the usual anti-China spiel for the uneducated masses.
But I think even he's also getting sick of US' ridiculous demands evidenced from his recent comments Re: US allies. There may be hope yet for Rudd.