China Customs -- Your IP Friend: The fact that you are manufacturing your product in China just for export does not in any way minimize the need for you to protect your trademark. Once someone registers “your” trademark in China, they have the power to stop your goods at the border and prevent them from leaving China. That's right, they can stop your goods from leaving because they own the trademark, not you. We are aware of companies having to pay hundreds of thousands of dollars to get their trademark "back" and to get their goods flowing out of China again.
Why China Won't Slow Down: A number of business people (mostly in the food business) have told me it is China's low crime rate and relative lack of corruption that is their reason for focusing on China instead of some of the other emerging market countries where they formerly did business. Let's face it, China is generally a nice place to visit and many other emerging market countries are not.
...I am amazed at how often it is that I have become aware of a problem in China, only to see the government put in place an innovative solution within months in an effort to remedy it. China's government is not democratic, but it would be wrong to deny it is "agile" and "energetic."