I have recently received an inquiry from a Chinese company; they would like to buy our product, which is sold on a per-usage licence basis in addition to the cost of the machine itself.
The question is how risky it is to do business with Chinese firms in your experience. I know that the Chinese government has tightened its IP protection laws, but if the company in question decides to not pay the licence fees and in the worst case creates a rip-off product, I don't see that we could do much about it - we are a small startup.
At the same time, the Chinese company seems serious about doing business with us, and we like to do business as much as anyone. Would you do it? What would you look for and do in order to limit the risk involved? Have you done this and been burned, or has it worked out?