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He seems to be a well-regarded author, do you really think he does not deserve it? If the Nobel committee did not care about offending the Chinese government by giving the Peace prize then, why would they extend themselves and reward someone as a political gesture now?
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The peace prize has been a political gesture for many years now. Sometimes the choices are absurd (Obama, Arafat, Rabin, Peres, Gore, De Clerck, Hume, Trimble). The choices for the literature prizes are very obscure and subjective. You could make a long list of excellent, world famous writers who DIDN'T win it.