If America or the UK decided to randomly make a random format, everyone in those countries, and everyone outside those countries would quite rightly yell "WTF?!?!". Its very difficult for countries, even aggressive dictatorship ones, to just declare what a new standard is going to be. No-one else is going to use it with all the big hitters going with the big formats.
I guess they think they'll be in charge of a localised standard which they can then use to control their people. Shame really,
I like Bluray cos its got a cooler name