I simply can't trust or rely upon a country where laws don't matter. Sure, in the United States, money buys you better representation, as it does everywhere. But in China, Russia, etc. being disliked by the government can be a death sentence.

Start your company in China, fine. You'll move to a western country eventually, if you get big enough, and China doesn't reform. You simply can't trust a society where the laws don't apply equally. There isn't an Apple, Google, or Microsoft coming out of China. Instead, you get Ali Baba and Weibo that clone American startups.

I won't consider China a threat to American innovation until they get a true rule of law, democracy, and intellectual property rights. This is a tall order that won't be fulfilled anytime soon.