Open source or not does not solve copyright issue. Problem in China is that software infringement is so common even some of the projects are back by government itself.

For instance the infamous of Green Dam has been violated BSD license. Some of the .dll even has identical code from CyberSitter and even still links to their server.
http://government.zdnet.com/?p=4961
http://yro.slashdot.org/story/09/06/...ve-Lifted-Code

Copyright is not the only issue but also politics as well. Chinese government just issued a controversy act for asking foreign software companies to share their source code in case of 'security'. Also Skype confessed that it allows Chinese government to modify its software to track SMS. Otherwise the software would not be allowed to distribute.

http://it.slashdot.org/article.pl?sid=08/10/05/0124249
http://cyber.law.harvard.edu/node/4710

Regardless, China is a huge potential. However, it's still not a 'safe/stable' investing environment comparing to free market. Policy making can be changed in a night without issuing any warning or adjustment. Such overhead is often too great even potential revenue is high.