While I must give you props for your accurate summary of the way things often work in China, IMO reducing matters to moral principles does little to advance the causes of Western business interests. Basically, anyone who wants to sell and/or produce in China has to assume that their IP is going to be (for lack of a better word) compromised. If they can come to terms with that and still figure out a way to make money, then they're good to go. Otherwise, they should stick with markets that offer better protection.