BCG says:

China is in the early stages of its economic development. This report describes the five phases of IP evolution that companies and nations pass through. Without strong international IP rights, Chinese companies may face exclusion from international markets, have to pay onerous royalties, or be otherwise penalized. While it is written for Chinese companies, the main messages of the report apply broadly to companies in other rapidly developing economies or any company trying to build competitive advantage through IP.

To read more:

http://www.bcg.com/publications/publications_search_results.jsp?PUBID=2116