Frankly, anyone who does business in China should come to expect this. Stories abound about how Chinese companies "compete" with foreign companies in China: you wake up one day and find out half your manufacturing and IT infrastructure is "missing", some of which returns in a few weeks, and then three months later a new, Chinese-owned factory opens up down the street, making products that look exactly like yours minus the brand names and serial numbers, which just happen to have great contacts with the Chinese government so that factory ends up with all the lucrative government and commercial contracts while your company just continues to bleed money on its "China strategy".
This is just the next step, for companies like Microsoft and Apple that rely on their brand to sell product despite having government-owned knockoffs everywhere. A foreign company managing to actually compete with an honest Chinese company? Why, they must be cheating. And we will find cheating, whether or not it exists, and take what's rightfully ours, that is, anything that ever touches Chinese soil.