what a bunch of whooey - China has a quarter of the world's population, and a quarter of the world's smart people. Do you really think those smart people are just going to make 'rip offs', when there's more fun stuff to do - Chinese geeks are just like geeks anywhere
Spend some time hanging out in Shenzhen and you'll see just what you're up against, lots and lots of smart people - your designers in the US are building in China, but they're designing 1000s of kilometres away from their factories, designers in Shenzhen are a subway ride away from them, they can pop over and tweak a process to save money and time to markegt
Chinese IP law may not be the same as the US's - they're a different country, you know they are allowed their own laws, they don't have to have yours. If they can compete better by not having the US-style copyright nightmare - good for them - without Disney on their backs they can compete far better than you can