SHANXI: The Merchant's Hotel, nice enough, but next to a spectacular new Hyatt, almost empty. When we entered the hotel, "Amazing Grace," was playing in the lobby. Later: "You'll Never Walk Alone" (a good title for China). Mr. Cai says that Chinese prefer Western music. The other night in a hotel restaurant we were serenaded by a trio (including a synthesizer) with such tunes as "Red River Valley."