The masses in China don't have an HD disc format yet to pirate, let alone two that their studios can bicker over. But they will soon with CH-DVD, the HD DVD variant approved by China. I'd guess HD DVD was picked over Blu-Ray because the format's lower cost of production on the player and disc side. While HD DVD and CH-DVD aren't actually compatible (they are just based on the same physical design), a few things could result from this that could benefit everyone: Cheaper players, cheaper discs as more factories go online. That could push adoption up, worldwide for HD DVD, simultaneously driving studios insane with greed and fear. BTW, did I mention HD DVD is a region-less format? More when I find out.
Foundation of China High Definition DVD Industry Association (CHDA) Heralds New Era of High-Definition Entertainment in China Industry Leaders Develop and Promote CH-DVD a New High Definition DVD Standard for Chinese Market Beijing (September 7, 2007) - The Optical Memory National Engineering Research Center (OMNERC), a laboratory dedicated to optical disc research in Tsinghua University, today announced CH-DVD (China High Definition DVD)*1, a new generation high definition DVD format developed in collaboration with research institutes and manufacturing enterprises at home and abroad. The physical format of CH-DVD includes Chinese-owned intellectual property, and is based on HD DVD, the next generation high definition DVD approved by the DVD Forum. The realization of CH-DVD was supported by the Chinese government, and will pave the way for the localization of blue-laser, high-definition DVD in China. On Sept. 7, 2007, OMNERC established CHDA — the China High Definition DVD Industry Association — in cooperation with the DVD Forum and Chinese and international partners. CHDA will play a leadership role in the promotion of CH-DVD, and will make a big push to launch CH-DVD player into the Chinese market in 2008. The emergence of CH-DVD as a high definition format integrating Chinese-owned intellectual property clearly demonstrates that a Chinese optical disc technology is already at the world-class level. In the near future, all related industries in China are expected to make the transition from standard definition DVD to high definition DVD. CH-DVD is designed to play a central role in the sound development of the content industry, and adopts advanced copy protection technology that effectively prevents the spread of pirated copy. Many content holders have confirmed their support for CH-DVD and will launch movie titles in the CH-DVD format. In the next year, China will start broadcasts of high definition TV programs. In combination with HDTV, CH-DVD will provide a wide variety of HD content that will enrich the lives of viewers.