Nazi Germany hosted the Olympics, a segregated America hosted it, a divided Korea hosted it, so why not China? It is appropriate reward for their sporting achievements. On the other hand, India's participation will make no difference except to some poor hardworking, unsung athletes. Rahi baat Tibet ki, all we need to do is look at our own "backyard" read Kashmir, Assam, Mizoram etc. So why don't we separate sport from whatever our political beliefs may be, and just support the spirit of the games.
