You are absolutely 100% correct in your evaluation of FXI and that's putting it mildly.
We and other shareholders are tied up in dead money[$$$$$$].
Since hitting a 52 week high of $41.97 on 01/03/13, FXI is down an incredible -24.40% and going nowhere.
So much for all the hype about China.
I took a nibble here (good entry point to start a position) - maybe it's going to keep plummeting and China's credit market will freeze further. But, if it doesn't and opens up - jez, this baby's going higher.