At this point I think I'm too afraid to ever go to China. You can't get justice there, and you can be swept up into some stupid diplomatic spat. Don't they realize how short-sighted this is? This is incredibly harmful to tourism.
I don't think that tourism is as much of a big deal to China as you think, and additionally I've got a feeling that most potential tourists wouldn't be aware of this news item or could dismiss it as "those people probably did something stupid, it won't apply to me"
To be fair, he did attempt to smuggle "methamphetamines to Australia in pellets stuffed inside tires".
It's not like they picked some random foreigner and accused him of something.