Prospect (UK) has an outstanding piece about a fellow who had business stolen in China.  It's the kind of article that will never get any serious coverage in the West.  One paragraph in particular sums up not only Mr. Kitto's experience, but the entire Sino-Western economic relationship over the long run.  We innovate.  They confiscate.

There is a theory about doing business in China that says—surrender first, then hope to win later. But virtuous intentions and signs of good faith here are taken as admissions of weakness. By forcing foreign investors to surrender, China keeps the advantage in its hands. The furore about Google and other internet companies is just the latest high-profile example.

I recently listened to the audio edition of J.M. Roberts' excellent book The Triumph of the West.  In it he points out that the Chinese are the only people on this planet never to have fallen under the domination of a Western power.  So, it is foolish for us to continue to deal with them as though economic engagement can serve as a proxy for colonial control.  We will change them superficially with our "techniques," but they will remain Chinese in essence.  And, we will come to regret that we surrendered first in a naive hope that we could win later.  I spent some serious time with a few Chinese exchange students in college.  While I was able to appreciate them as individuals, I would never let my guard down with them as a society--certainly not to the extent that we already have.