I'm wondering your opinion, is this a smart move?

China and Japan are two countries that really don't get along at all. Their countries have different laws and different ways of dealing with capatalizm. China being a communist country believes in equality and that everything belongs to everyone and the government completely controlls the nations assets. Is it smart for Nintendo to be dealing with such a government and in such a country?

China is also the largest piracy nation doing  nothing to prevent or fight piracy actually the government promotes piracy and often is guilty of funding piracy themselves. Millions and millions of dollars are lost every day by the Chinese pirates. So is providing the chinese with a direct source of material smart?

In China the nation already has a home grown chinese knock-off called the Vii as well as the ViiPhone. Can Nintendo even compete with the cheaper counterfit Vii which is actually Chinese made and marketed. The Chinese Government opennly supports such companies infact they likely own the company. I remember the RedBerry made by the Chinese Government using stolen BlackBerry technology. With all the pirated knock-offs in China is it even worth trying to sell Wii when it has direct competition from a cheaper knock-off of itself?

So in a nation running amuck with piracy where the Government is even guilty itself of pirating and a country where Japan is often hated by many. Is it really worth the trouble, remember the I-Que it was decently succesful but obviously wasn't too successful only getting a small handful of games ever released. So with poor sales in history with the I-Que and the failure to launch the GameCube in China and the dismal sales of Nintendo products in other pirated rippled nations like (South Korea) why bother, is it worth it? 

How many units could be sold in China?

Would the losses by pirates outnumber the gains made?

Would the Government co-operate with Nintendo or steal technology?

Can Wii even compete against the nations Vii? 

They have to. The more they (companies in general) avoid China, the worse the piracy problem in China will be. China at one point will become a full developed country so every company needs to make their stake in China or otherwise, they will be in for some missed profits.

We've already got some threads going on discussing this, sorry.