No, they can't jail or shoot them, and I doubt that they'll expel them, either.
What the Red Chinks will do is put on their best face for the world. They'll probably slow the repression, just as Hitler did in 1936, and ignore any questions about the Lao Gai, just as the Germans pretended that the concentration camps did not exist.
I don't think we should boycott the games, either. But who knows what's gonna happen? Beijing is already mad about Bush's steel tariffs.
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