I’d say there are pros and cons. One consequence of lax IP laws is that competitors will rapidly converge on the same set of popular product features. When everyone has the same set of features, innovation and the ability to distinguish oneself from the competition becomes a matter of life and death. Resting on one's laurels behind a warchest of patents is not an option.

This is particularly true of a playing field as large and as cutthroat as China, where at any given time there are thousands of competitors jostling for dominance of even the most minuscule of niches.