Unusual insights to intellectual property (IP) in China are highlighted. For instance, China is moving away from emphasis in original equipment manufacturer (OEM) manufacturing and ODM partnerships, and toward more innovative products that will be conceived by an always growing number of talented engineers. China also has economical research and development (R&D) resources, a huge domestic market with increasing spending power, and huge hard currency holdings that are close to $700 billion. Even though there is still theft of intellectual property (IP) going on, companies are moving past the phase of unapologetic fakery and counterfeiting, and are now either infringing on patents or designing around them by adding minor changes. This is moving them in the direction of their own R&D, says Xiang Wang, a Shanghai-based patent attorney for Jones Day. A positive outlook on Chinas progress may be taken when it is postulated that Japan, Taiwan, and Korea followed similar paths. China is now doing in-house innovation, joint ventures, purchasing of patents, and acquisitions of whole divisions. More deals are expected in the vein of the Lenovo purchase of the IBM PC division and TCL's acquisition of all of Thompson's intellectual property (IP) portfolio. However, Chinas path to innovation could be blocked in multiple ways, says an MIT research affiliate, because of China's industrial strategic culture, which's characterized by a too-strong emphasis on political relationships, inability to form horizontal relations, and a short term profit motivation.