It will be interesting to see whether China is going to follow through with their threat to downgrade their political relations with Norway now.
What do you find irrational about Chinese foreign policy?
http://www.google.com/hostednews/ap/article/ALeqM5iAekET4T1D...
According to Norwegian newspapers, it is now a great risk that China cancels the negotiations.
Moreover, an embargo is only effective if it can be enforced, there is nothing stopping chinese goods going from other european countries, they would only have a bit higher overhead.