GW wanted to be tough on them, but the Chinese were talking about "junior should be like his father"...
It really just made the whole situation worse.
In all reality some Chinese were excited for GW to come into office merely because he is a Bush.
Others were scared sh##less because they knew there was LOTS of tensions built up between the US and China.
Even now, the family history there has some influence. I am not talking about one person or another telling GW what to do, but rather the legacy GW is dealing with.
Back under Clinton China was talking some serious stuff and shooting missiles.
Under GW there ain't no way. The consequences are there and pretty much guaranteed. With GW the Chinese are actually being far more civil than with his predecessor.
Some Chinese see things like "yeah America doesn't understand China, but if we offend the family of THE Bushes thats not good. They have historically been good to China, so someone on our team must be causing trouble".
Its not just people that matter in China. Its the whole family. Its a cultural thing.