>It came as a pretty big surprise for me that they got some Lepin factories closed down and raided by the Chinese authorities. They are as you say a good example of a company that knows how to work in China.

This is becoming more and more common. Adafruit is another example, really good IP protection in China so no one has knocked off their boards. I have a Chinese IP lawyer I recommend who is great at this, but unfortunately most foreigners feel American IP protection is sufficient so won't spend the little bit it takes to protect themselves (better) in China.