They do when they're with a subordinate or a vendor, both of which he did. Add on "foreign agent" and you're done.

They can when they reveal poor decision making. If this guy is so stupid that he's willing to stick his dick in anyone, including a Chinese spy, what does that say about his ability to make rational decisions elsewhere in his life? He's clearly not making decisions that benefit him personally in the long term so can he even make good long term decisions at his job?

There's a reason why government background checks looks at financial records. Someone that has trouble paying their bills due to a gambling habit might be easy to turn by the enemy with some cash. Or someone that regularly cheats on their wife might be willing to do some favors for a pretty girl if she lets him sleep with her.

They do in our puritanical culture.

In a Goffman Front Stage/Back Stage sense, you are supposed to keep the front stage presentation on the level of a pious monk or nun.

The irony to me is this just another asymmetrical advantage for Chinese culture.

Getting obviously played so hard that it makes you, your wife, your children, your company and your entire country look like idiots surely should humiliate your business no?

"Oh hey, I'm going to be buying 1,000,0000,000 widgets from that widget maker Nvidia"

"Haha you mean the Chinese spy guy? Hey ask if you can get a discount if your secretary sleeps with their CEO haha"