Having lived in China, I agree that it's definitely not a center for creativity. From my perspective you really can't beat the amazing ecosystem and startup culture that exists in Silicon Valley.
It was, however, very interesting to operate from China for some time. I'd be happy to speak with you about what it was like, if you'd like to open up a dialogue on my blog.
As for the other points, my new venture has absolutely nothing to do with "squatting". Please reserve your speculation and judgment on my "ethics" until we launch. We're actually creating a practical solution to the very problem which seems to anger you.