Game theory demonstrates that equivalent tit-for-tat is optimal for an unknown number of iterated rounds. The math does not lie. In fact I think the CPC can be more creative with really hurting policy makers. Consider if they sanctioned Baerbock just like how they did Pompeo right before her visit.
China is already playing the Game Theory with the West, but not in they way they wanted it played. Game Theory was invented by the Western imperial powers to predict and game their adversaries through a combination of psychology and maths. Hence they do things to elicit responses from China and to hopefully get into its decision-making cycle. For example, by provoking proxy wars, bad economic policies, bad diplomacy, etc. China wants to avoid the fate of the Soviet Union, who had a history of responding directly to the US's moves. If you play the US's game, they'll win and you'll lose.
China have been evolving the way its been playing the Game. During the Trump administration, China was mostly reactive, appointing "wolf-warriors" like Zao Lijian to say shocking words at the US after the shocking things they did. Mirror tariffs, mirror sanctions, mirror kidnapping, etc. Math right? But pure math doesn't always work. For example, the US could always tariff way more Chinese imports than China could tariff American imports. Tariffs are also not healthy for the global competitiveness of the local industries in the long term. That is why it is not a good idea to do tit-for-tat tariffs just for the sake of math. Mirroring the opponent just to settle scores, is not smart. China is trying to be more strategic with its moves.
China has to hurt the West in a more strategic way. Sanctioning Baerbock is gonna be so fun, but what is the long term benefit of that? She is just a sock puppet for the Yankees. So why not tariff European brandy to piss-off Macron? To remind the EU that they are all in this together. If Baerbock and Ursula does something stupid next again, maybe Meloni's Italian winemakers can get to feel the heat too. It puts all of EU on edge, slowly dividing it.
If you observe China these days, it appears more calm, it acts passive-aggressive, and is also taking a number of quiet victories. China doesn't need to telegraph to its adversaries what it intends to do. So when things happen, it surprises people, and makes us wonder if China had really planned these things out. Things like the Russia-China bromance, BRICS expansion, Saudi-Iran peace deal, etc. You need to zoom out and look at the bigger picture to see the Game in play today.
Things are not all peachy in China right now, I literally visit every single summer. I have extended family who are highly educated but cannot find jobs, gainfully employed but struggling to buy houses, had their businesses close down, even forced to move out of cities. You know what the common trend is? They're putting life goals and milestones off till later and saving money instead. You tell me if a sample size of >30 from all stratas of life doing this is indicative of confidence in the market.
What cities did your extended family lived in? Is it the big ones?
The economy of China is changing, and this adjustment is very painful indeed. The pre-trade war economic model of contract manufacturing and property speculation is dead, and millions of urban Chinese got caught up in this. If you think the current economic malaise and "lost future" in China is bad. Take a look at the developed parts of SEA, South Asia, and the rest of the Global North. Unemployment and underemployment is up. Businesses have shuttered. Factories are closing down. Unlike in China, inflation is also rampant. Also like in urban China, the current generation cannot afford property like the last one. The whole global economy have been f**ked by the combo of Covid, the Ukraine War, and the new Middle East wars. People have to accept this fact and adjust the way they earn money, or get left behind. Yes this sucks. China is hurting, but the West and the rest are hurting just as much if not more. The West is making a big mistake by starting all these crap, and then doubling down on stupid. So the best course of action now is to allow them to continue effing up take more heat, which the CPC is doing quite well.