China knows exactly what they're doing.
The WTO riots in Seattle were partly because this was an obviously dumb strategy that sold out the well-being of the public for the enrichment of a few elites.
And Europe did to China in the seventeenth and eighteenth century. Wedgewood porcelain and Sevres...
But that doesn't mean we shouldn't take defensive measure. Do defend our IP because that's our self-interest. Don't do it with the moral pretense.
It just means that defensive measures will not be successful.
I'm fully aware the actions require a response
Edit: expanding: the technology wasn't stolen in the same sense as today, because the Chinese couldn't not wanted to export and sell the technology back to the West. But US/Europe today are getting their IP stolen, and immediately sold to them. That's the asymmetry.
Right now it's in transition.
An example from within Europe: http://www.muranoglass.com/en/news-en/ten-facts-you-did-not-...
And I also suspect you're not understanding the relative value of those processes (glass, tea, porcelain, etc) to the economy of those areas vs the current relative value of the "product of thousands of engineers".
There's a lesson there.
Sure, cutting-edge intellectual property these days is more complicated and unlikely to be completely and fully understood by a single person. That's a function of the progress of technology.
I don't see how one person, or one country, stealing IP via memorization (the technology of the 1800s) is meaningfully different from someone stealing IP on a USB stick (the technology of today).
The cost of labour and compliance with health and safety is the main factor.
Is it surprising the Chinese industrialist looks at the rate of profit for these goods sold in the USA and tries to copy them, and secure some of that gap between cost (of production) and price?
So now, thinking like a US consumer, which is better? The iPhone sold by Steve jobs, or the cheaper phone with stolen IPR? What if the stolen IPR is totally ephemeral and only about the GUI?
You're describing it like it was a planned action. Is there any reason to describe it like that rather than exploiting an easy opportunity?
Even if they didn't originally conceive of it as a plan before Nixon/Kissinger's 'opening' (i.e., the original opportunity sort of fell into their lap), we can be quite sure that once they recognized the opportunity, they have made very careful long term plans to exploit it.
We can also observe that these plans are being diligently executed now.
To the Chinese, theft of IP is just business as usual.
Every single firm I've personally encountered that has done biz in China has either already had their IP stolen and sold in competition with it (or just products sold out the back door w/o label), or fully expects that it would happen and takes strong defensive strategies, e.g., sending pre-mixed materials to China where they only do the final process.
This is not sustainable. While the West thinks that we were exploiting China for it's cheap labor, the Chinese had a much longer range view -- they were exploiting our myopic lust for short-term profits to get our most valuable assets and gain long-term strategic advantage, both in both commercial and military technology.
This is likely to go down as one of history's greatest strategic blunders.
I wonder if it has already gone too far for us to recover.