Limiting I/P Exposure in China

In "Into the Mouth of the Dragon: Patent Protection and Enforcement in China,"
David L. McCombs reccomends the following for limiting I/P theft when doing business in China:

• Register Inbound Technology under Chinese technology transfer regulations.
• Obtain Patents.
• Set Up a Wholly-Owned Enterprise which, as a practical matter, may be preferable when it comes to avoiding access to IP and its subsequent theft.
• Create Strong Contracts with provisions for the preservation of IP rights with controls over the use of subcontractors who ae the likely could be a route for theft of IP. Termination provisions should address what happens to assets such as trade secrets, equipment, inventory and documents upon termination of the joint venture.
• Implement Security with extreme precautions regarding physical and digital
  security.
• Partition Technology by separating any processes, technology, and IP that is not
  directly relevant to the tasks they need to perform.
• Cultivate Relationships with key individuals that can be as important as the written law.

More in I/P in China here.