While IDEO and Frog have studios in Shanghai, Lunar in Hong Kong, and various other companies have done work in China, none of them market themselves with as much flair as the:

The Red Network consists of Kaizor Innovation, Y Studios and culturalANTENNA, and is a "global alliance" of "ethnic Chinese with bicultural backgrounds."

Do they live up to their marketing message? I don't know -- their websites don't show much in the way of China-based projects. Having said that, being "bicultural" myself, I'd check them out if I was looking for designers.

Thanks to Andy Switky of IDEO Shanghai for pointing them out to me.