Sometimes it takes a bad meme to explain the obvious, and sometimes that meme is correct.1
In 2013, I was working in a robotics factory in Santa Clara California - right in the heart of Silicon Valley. I had the good fortune to talk to several of the Tesla engineers about overseas manufacturing. There message was simple and blunt. "If you are in China do not even mention IP (Intellectual Property), or the next day you'll see it on the streets being sold."
Yesterday, while looking through hackaday.com I ran across an interesting article, entitled Reverse-Engineering a Superior Chinese Product. To say the least, I was intrigued because most Chinese Products are cheap copies or clones. But just like the Japanese have learned to increase quailty to increase sales, I expect the Chinese to do the same. In the article, American engineers reverse engineer a $12 Chinese phone (sold only in China).
Here is a blurb from that hackaday article (Jan 1, 2105):
That article links to a blog post from bunnie. Here is a short blurb — to encourage you to read it.
NOTE: After the eighth paragraph Bunnie breaks in to some technical discussion. It is intended for person reading Hackaday, not entreprenuers. However, beyond that some of the article is interesting, such as the prediction he cites by a former MIT professor.
Other parts are comical, such as the section entilted Reversing the Boot Structure
Other parts have real implications, such as the second paragraph of Booting an OS
The video is also extremely interesting. I recommend watching the first 15 minutes and the last 15 minutes.