Is flying a Chinese flag showing disrespect to veterans?

My town is struggling to come to grips with this question. We have a boardwalk that goes along the waterfront at the harbor here. Along that boardwalk are flown flags from different states and countries. Recently, one of the local townspeople bought and dedicated a Chinese flag to be flown there, not as a political statement, but as a memorial to her mother, who lived in China for awhile. The veterans groups here, particularly the Vietnam Veterans threw a fit!! They threatened to take the flag down by force and refused to participate in the Memorial Day festivities held there until the flag was removed.

I'm struggling with this. I think buying and flying the flag was a gesture of peace, a tribute to the PEOPLE, not the Government of China. But, at the same time, I sympathize with the veterans, who feel flying the flag somehow diminishes the importance of their sacrifices. Some of the veterans (not all of them) still consider China "the enemy". Those of us who have never fought in a war, never seen our friends and brothers die can never understand how that must change a person. By the same token, a person who HAS experienced those horrors can never understand how we can hold out the hand of peace. It's a difficult issue, and I don't know how I feel about it.

Is wishing for Peace a belittling act to those who have fought for freedom?

Can anyone tell I'm a Libra?