Pretty much describes the US media.
I think it is quite likely China will arrest some US executive. But the retaliation will go further than that.
Of course the real problem is that the US, and the dumb people who cheer this stuff on, think that US law applies to all people everywhere in the world. Because they are patriots and good people on God's (or Obama's) side.
Imagine if China did have Tim cook arrested. And had Pakistan do it for them. For violating Chinese law in his US company.
Imagine if China wanted to arrest one of America's most prominent journalists for something he published that exposed some of their secrets, and forced him to hide out in a small room in a small embassy in a third country in a tiny room. For years.
I could go on and on with things that people would find almost declarations of war if China or Russia did them. But they somehow see it as just when the US does it.