The US trade representative has filed for formal consultations with the Chinese government over there IP protection policies, or lack thereof. China is one of the worst offenders as far as respecting world IP rights, with little or no punishment for counterfeiters who largely escape punishment or even the closing down of their operations. Nintendo has identified China as the greatest exporter of infringed software and hardware, estimating losses to the industry of $762 million. China claims to be dismayed at this request for formal consultation, but I doubt anybody takes them seriously: they do practically nothing to stop piracy.
Nintendo points out that over 7.7 million infringing products have been seized from 300 factories over the past four years.