2 billion people over there, 1% market penetration in these numbers would mean 20 million consoles. It is potentially a 100 million consoles market (considering that 5% of the population can afford and is interested in gaming), so, Sony better hurry, a company can make a lot of money in China.
Just think about Brazil: it sucks, but the market was big enough to justify sony instaling a factory in here. China is much more promissing.