So from your comments I take it that you are comfortable with China just taking or as you called it "cloning" foreign intellectual property without fairly compensating the creators of this foreign intellectual property. How does that work? Seems one sided to me and judging from the reaction of the world most parties agree.
Here is something else to consider: How can this be a "Chinese century" if China is doing nothing but taking? This is puzzling.
The century is young. Not so long ago a certain new country called the United States of America was not to dissimilar to China in its IP theft. They are calling it a chinese century because china's still far from developed, and at this stage of its development it's already the second largest economy in the world. It is because china hasn't reached its potential, but has every sign of doing so, that it is being called a chinese century.
China has given up its environment and labour to make cheap products for western consumers for the last twenty years, how is that doing nothing but taking? And since when was IP theft the major point of dispute in trade/industry between china and the rest of the world? Wasn't undervalued currency and a cheap workforce the scapegoats? Not that I'm denying IP theft does exist, but which industries are we talking about? Most of the high tech, (that is, not knock off ipods/phones, luxury items etc) products like high speed rail, were done through agreements with foreign companies of ToT
Of course, the difference between IP theft existing, and what you suggested "By no longer being able to encouraging companies to move factories to China with the lure of plentiful supplies of rare earth elements to where China would to be able to pirate foreign intellectual property, China is the ultimate loser in this turn of events." -- which implies chinese industry would somehow would be unable to survive without IP theft, is both funny and confusing at the same time.
Another implication of that statement (apart from the one about foriegn companies led to china be REMs, which gyj already replied to), is that the foreign IP theft is somehow rampant throughout the country and foreign companies are stupid enough to let the other side in without agreement.
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The subliminal malice in your words are dissappointing.