For Chinese (and Indian) economies, the recent VC boom has been a significant conduit to siphon foreign dollars directly into consumer economies. The govt's have mostly kept a handsoff approach as long it's basically acting as a consumer economy stimulus funded by the VC. If any of these businesses become significant profit drivers, you can bet your last dime that local competition will find ways win those markets using whatever means necessary (more easily in China than India... but still).
