tells you that you are smart, funny, or handsome. In general, the Chinese are self-serving, and look upon Western people as pests in their country

Mate, I'm not sure they see us as pests, but I do agree with the rest. They use flattery to achieve an end, whatever that may be.

This article may prove interesting and perhaps scary reading:

http://knowledgenetwork.thunderbird.edu/worldcafe/2009/06/08/flattery/

There was also a warning by the UK home office about UK businessmens hotel rooms being searched, and receiving gifts with bugs.

Cheers
SMGS