At the DesignCon 2006 conference all kinds of silicon IP technologies were shown. During a panel discussion a question emerged about IP protection in China. Richard Goering wrote in the last paragraph of this article for the EETimes: “Larry Rosenberg, head of the VSI Alliance working groups, rose from the audience to comment that China is at an "inflection point." He said that Chinese officials are "building more fabs, recognizing no one trusts them, and acknowledging that it's a problem. There are a lot of efforts to change that."
Rosenberg was probably also refering to the fact that China Semiconductor Industry Association signed a deal with the VSI Alliance (VSIA) so they will soon be basing their products on international technical standards that enable inter-operability. In September 2005, Managing Intellectual Property wrote an article about it, here.