It's not a blow, it's natural for a rocket's first flights. Check out Ariane 5 performance in its first 14 flights and remember that last week we had Ariane 5 80 consecutive flight without an issue. It takes time to iron out rocket problems.
That's a blow to their space program... but I thought Twitter was blocked in China, how come Xinhua gets to use it? And why, it's not like other middle country people can access Twitter.