This is the core of the problem. Why is China even acknowledging this in any way, shape, or form? It should deal with America like a competent parent deals with an entitled child. If the child starts crying because it wants a candy bar and China gives it a candy bar, it'll learn that they way to get candy bars is by crying and screaming and making a scene. No candy bar.
The way to deal with this is not to say it's an internal matter or try to "reassure" or anything like that. That's giving the whiny brat a candy bar. The way to deal with it is not to acknowledge it, and to drive home that you're not acknowledging it. If people like Hu Xijin were doing their jobs right, they would say that the sequence of syllables "Peng Shuai" has no meaning and that China isn't going to discuss a topic - any topic - just because the US wants to discuss it.
For the people who really want soft power, this is how you go about getting it. I'd like to see useful suggestions like this from them instead of the usual waste of digital ink.
I can see your points... but this scene won't happen if folk like Peng didn't create the noise like she did. So it is very important that Peng must get some pain, must pay some price for her action. It serves as a serious warning to any "semi famous or famous" personality to think wisely and see the bigger thing! I don't suggest to destroy her future unless she collaborates with external force to create some fuss, but there must be some hard lesson for her as a reminder for others to not act foolishly / recklessly / selfishly. Being long in a very individualistic sport might have influenced her way of thinking. I ain't a fan of tennis, moreover Peng.
Well, I think of the very important thing that the whole nation of China need to rethink that the world prior to the trade wars and virus thing is NOT the same one after all these things happen.
Hosting the Winter OG was made long in the past before these things so we can understand it. But from now on nation should not waste too much money on any sporting event that bring no sufficient benefit for nation! Like tennis, Chinese athletes are not good there, folks like Li Na might be once in blue moon. Unless China is getting a good biz in tennis-related industry, no point to spend much money in hosting tennis tournament or sponsor its events. I wish nation will prioritize the spending to more important fields... after all resource is always scarce!
THE WORLD HAS CHANGED! Old thinking must be re-evaluated and be adjusted to the NEW SITUATION, NEW ERA following all sorts of trade war, sanctions and embargoes and hostilities shown by several governments esp. Washington and the virus thing. Focus the resources to the most important aspects, mainly hard power that will shape the future of China... IMO it means spending more in R&D in crucial technologies, in crucial areas, innovation, military, education, bio prevention (more labs, more manpower, more researches), industrial competitiveness, trade and economy development, and so forth.
At the end it's better losing in the soft power areas than losing in hard power ones. Of course, if possible, try to excel in both fields, but if have to choose due to constraints (for example, due to the costs are too high) then hard power is a clear choice! Past events like Opium Wars, Invasion by Eight-Nation Alliance, IJA are the unforgettable hard lessons. Others may not like you but at least they dare not to try to come to your place to play foul or even rob your wealth or rape your women or destroy your home! Just set the perspective and vision right!