As for Qiao Ze wanting Peter Schultz to be one of the reviewers, that's really not a big deal.
Don't forget that during the submission process, authors already have the right to suggest which mathematicians they'd like as reviewers or those they'd prefer to avoid. Even if Qiao Ze hadn't made this request, Lotte Dugan had already planned to include Peter Schultz as one of the reviewers.
He was well aware that, recently, Peter Schultz had maintained academic interactions with Huaxia—after all, he had been the middleman for those exchanges. So letting Peter Schultz review the paper was far more reliable than anyone else.