From John Gapper's blog on China and IP
"[In China] a pattern is developing. One company cedes its intellectual property to a Chinese SOE and then all of them are then squeezed to the margins of China's domestic market, and face a new competitor. None of this is accidental, or a case of over-eager SOEs crossing the line. China wants to transform from being the factory of the world to an advanced economy and is using its market power to take a short-cut by "digesting" others' intellectual property. One State Council report called for the "absorption, assimilation and re-innovation of imported technologies.""