There appears to be a double standard in China. Foreign firms are expected to follow all rules and regulations. And domestic firms are don't. This article is suggesting a 30 to 50% advantage for domestic firms. China's 'foreign friends' must pay the Communist price - Telegraph

In an effort at damage control, the Vice Premier of China has promised the foreign firms will be treated equally with domestic competitors. This is after the EU issued a 650 page paper detailing protectionism within China. Great quote from the article about the paper: The paper found that China was shutting out foreign businesses by flouting WTO rules, employing spurious red tape and regulations while still largely barring foreign companies from government procurement contracts, a key part of China's state-controlled economy.

My opinion is the Government of China is very worried about continued growth of the Chinese economy that includes creating domestic industries that are world class. Part of this effort is requiring foreign firms to share their technology in order to do business in China.

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