A recent article suggested that China was already inclined to "solve" this problem (from a diplomatic and political standpoint) by doing what it does best: simply dragging its feet. This seems incredibly easy to do when the Hong Kong legal system is inclined to move slowly anyway, any extradition will go through a number of appeals and the process for applying for asylum is being revamped putting all such cases on hold (not that Snowden has applied for asylum yet).
It is an somewhere between widely suspected and an open secret that China engages in concerted intelligence efforts against the US government and US corporations. Many cyberattacks originate in China (and there is strong evidence that at least some are state-sponsored). And China is widely believed to have stolen nuclear secrets [1].
But this revelation goes the other way. I really can't predict how China will take this. I suspect they'll be more disinclined to hand Snowden over (or at least do it in any kind of timely fashion). To paraphrase Ned Flanders "We've tried nothing and we're all out of ideas!"
Who knew in 2008 that during the Obama administration it may get to the point of people wishing for the good ol' days of George W. Bush? Well maybe not that far but it's really not that far off. The war for intellectual property, Federal prosecutorial overreach (eg the Y12 "terrorists", Aaron Swartz), the relentless pursuit of whistleblowers and the end-run around the Fourth Amendment are simply stunning, particularly from an allegedly Democratic administration.
[1]: http://www.nytimes.com/1999/03/06/world/breach-los-alamos-sp...