Call me heartless, but I really don't see a problem here. If one enters a country that requires a visa, but does not requie one for connections/transit, who in the world would think that they would be free to roam around that country during the connecton. To enter China, one needs a visa. I would assume that without one, I would be in a sterile area until the next flight departs, unless of course, I have a visa to exit the sterile area and enter the country.

Am I missing something here?

I recently transited Brasil without a visa, but I transited the town of Tabitinga, which is considered the frontier of peru/brasil/colombia and knew that I could not go beyond the towns border without a visa. My ticket was on 1 world (AA/LAN). They didn't tell me that I couldn't leave the town (unless I left to go go Peru of Colombia) and I was there for 3 days. I did my homework, and knew what the restrictions of my immigration status were. You bought a ticket to connect, not to exit the sterile area. If youhad a stopover or a stay in China, they would have made sure you had a visa to do so, but as you booked a connection, they complied ith both the letter and the spitrit of both the law, and your ticket. No fould here!