I agree. We operate in several areas of mainland China (Shenzhen, Hangzhou, and Kunshan, near Shanghai), and we have a major IT office in Shenzhen. Their general responsibility is the combination software/hardware hacking to build factory control systems, and the impossible-to-overestimate benefit of having those people perform that specific function is precisely their can-do attitude and willingness to hack. This in contrast to, say, India, where we have a much larger dev+ops organization that generally spends their time executing assigned tasks rather than engaging in creative problem solving. Yes, there are pitfalls to operating in China re: government/law/IP risk, but on the other hand, it seems nearly everyone outside party politics has learned hacking skills simply in order to survive. It's an incredibly valuable market, and this attitude along with a decent formal education system and ubiquitous internet access is propelling it full steam ahead.
tl;dr: Yes, there are problems, but there are a lot of upsides to operating in China, too, besides even the $ (either the huge market or cost savings, depending who you are).