This was happening years ago, back in 2005 in my last trip for example.
What is really behind this is a business that is not shackled by the same leg irons that cripple development in the west - for example accountability, itellectual property, patenting, copyright, health and safety, quality management and so on.
The gist of the problem is that you can either have development that is ethical, safe, manageable, legal, and controlled.... or you can development that is rapid, fluid and prone to appropiate and adapt any idea that fits the bill.
It is impossible to have both.
In China you see an emphasis on the latter and in the west you have the former, this is a culture clash of epic proportions. At the end of the day we are all to blame, we all like the idea of promoting western businesses and industry - but we all have a greater desire for cheap DVD players and iPhone clones.
Yes I can appreciate the rapid, innovative engineering this trend shows in China - but behind it is a clash of cultures and ethical and moral decisions that have decimated industy and development in the western world.