China is in a race to acquire the Intellectual Property (IP) that's
available in advanced economies at an attractive price. A Chinese-
made $30 DVD player -- sold at Wal-Mart -- includes $6-$12 of IP
license fees to Western companies like Dolby Labs -- the single
largest expense in the player. To shake these fees, stimulate its
own development, and protect local manufacturers, China is also
considering unique standards for 3G phones, picture phones, and for
the digital home. China is a large-enough market for its approach to
work.