I am really disappointed that Rafa has accepted to work in a dead-end league*. His career choices are utterly bemusing. I can't see this China move as anything more than transitory. I thought the whole excuse to not renew at Newcastle was that the hierarchy didn't share his vision for the club, but if he was looking at short-term options there was a year's extension on the table. He could easily have found work at a higher profile club in Spain or Italy. I fear Rafa himself thinks he is done at the top level, it's tragic.
*Speaking as someone who has been living in Shanghai for a while
I think Rafa, more than most, is the kind of manager that needs a project. A club that's not after short-term success, but will buy into his methods and resource him as he requires, for him to build a better team over the long term. That's why Newcastle could have been the perfect club for him, had they managed to get rid of Ashley.
I think a period away from Europe is probably not the worst idea for Rafa. It will be useful for him to spend some time away clearing his head, and eventually, someone like a Villa or a Derby will come a-calling, if he wanted to return.
It's a bit of a shame that Milan didn't seek him out after Gattuso left. I think he'd have some interest in the club with his admiration for Sacchi. They are out of Europe and are probably in a rebuilding phase, so it's not the worst place to come in.
Problem with Rafa is he's tactically not the most modern manager, so clubs may prefer to get some young German in.