Volkswagen recently caught FAW stealing designs for transmissions and engines. A VW exec told a paper the situation is "a catastrophe." This was no the first time, either. Two years ago VW designs were used to copy the EA111 four cylinder motor. VW's execs complained to the head of FAW who apologized and brushed it off as simply an "overeager" engineer going a little too far. FAW built a plant to build this copied motor while the controversy was taking place.
There is not much Volkswagen can do as they need the Chinese market and the Chinese government won't do anything about their companies getting ahead by stealing from others.
A shame the Chinese won't play by international rules and that blatant theft is tolerated and even expected from China.