To be honest in some ways I'm not sure how to respond. I did wonder whether there might have been a slight confusion, as perhaps they only meant that they would want "good looking" sailors for overseas visits, or something. But the wording seems rather clear. If it is true then it goes to demonstate the control-freakery and obsessive nature of the bigwigs (guess this was a politically-motivated decision).
[NO POLITICS!!!!]
Very, very strange. Highly amusing. But still very weird. Makes me think of those old imperial examinations.
Official:
"Do you have experience of how to solve public planning problems?"
Candidate:
"No, but I can make a great poem about breezes on moon-lit evenings."
Official:
"You're hired!"
Who cares if sailors are competant, brave and hard-working - so long as they all look like Jet Li! China will win a future war not through military expertise but by blinding its enemies with the light from the perfect smiles of its troopers.
EDIT: Pop, you really are a spoil-sport
On a more serious note, I think the height restrictions are rather unfair. Sure Chinese people are growing taller, but they're not
that tall. Perfectly able people will be left behind for the sake of image.