The problem with China "not playing by the rules" is nothing new. Most developing countries do that. Take a look at the early American industrial revolution. When we were developing our mass manufacturing, which we have now mostly abandoned, we copied the Brits, Germans, Dutch, heck, we copied everyone. Eventually we came to produce the best of most things, now we have moved it overseas. A big reason that Japan attacked Pearl Harbor was that we and the Brits had our Navies running around Indonesia and China sinking and looting Japanese ships and restricting Japanese imports while refusing to import their goods to the US.
At times, every nation works in direct support of their national interests and says "screw you, international law"! We do it, they do it, everyone does it. Right or wrong, it happens. China currently has the cheap labor with a large unemployed population, is just starting to implement their own internal laws and is just now beginning to be able to control it's own borders from inside and outside influence. China has provinces, much like our states but much larger, that don't even to this day respect or adhere to the central government. They have people living there in remote regions that don't even know how to speak provincial Mandarin Chinese! There are at least 27 languages other than Mandarin spoken and some people have never the official Chinese national language. We think Cajuns and New Yorkers talk funny, at least they speak some forn of English!
Chinas economy is growing so quickly that it is impossible for the central government to manage it. Their middle class is just developing. In some places they are still using a barter trade system and don't even use the national currency! Until the fall of the Soviet Union their national focus was on not being invaded by Russia, and they were and still are incredibly scared of the US. We look at China as a huge autonomous nation with a strong army and central government. True. But they have almost no Navy, and the government is only recently being able to really control parts of their country. There are many people who don't pay taxes, and many who don't even know they are supposed to.
What does all this sound like? The US in about the year 1870.
Beleive it or not, China is progressing incredibly quickly considering the problems it faces. What is the most favored motorcycle in China? Harley Davidson! The most favored car there is the Corvette! Very few people own them, but everyone wants them. If you ask the average urban Chinese guy what his favorite country is, he'll say the US. They are copying us, yet ask the average rural Chinese guy from a remote province, he won't even be able to point out the US on a map. He probably couldn't even point out China either.
Fastest growing religion in China? Christianity. Foreign language most often learned? English. Country most often immigrated to? US. Biggest trading partners? US and UK. Nation from which they import the most technology? US, although India and Pakistan are catching up.
Yes, China often acts without agreement from the rest of the world. Often they don't care about international law, and they should care. They are beginning to understand that they need support from other nations.
Here's something to think about: If you are walking down the street in the US and get robbed or mugged at gunpoint, what happens? Will anyone come to your aid? If you are a foreigner in the US, you think you'll get any help? In most places in China if a person sees anyone, Chinese or not, being robbedhe will yell for help, and EVERYONE will immediately chase after the bad guy. He'll have 30 men and women chasing him down and if they catch him, they'll beat the crap out of him, then take him to the police. And they will make sure you get your property back, they won't keep it or say they didn't find it. They make some shoddy products right now, and aren't on track with international law but they are getting better very quickly.
I'd rather buy a Chinese product, if it is reasonably well made, than one made in Mexico. Talk about a lawless nation!