We have heard back from our upstream provider, Cogent, who has been trying to work with China Telecom. China Telecom is forcing your traffic to go through the link with Cogent, which is oversaturated and this is causing the packet loss. China Telecom is not responding to any of Cogent's attempts to contact them via phone or email to resolve this issue. Until China Telecom fixes the problem there is nothing they or we can do.
Please let us know if you have any questions or if we can be of further assistance.