After meeting with several China VCs and talking with two others we invest with, it seems that they have all reached the same conclusion: wireless value added services & internet is TOO CROWDED. Duh. So they've all gone off in different directions doing unique and creative things... NOT. Sorry, the truth is that they've all discovered (independently) two new less crowded sectors: healthcare/medical devices and "cleantech". From the frying pan into the fire.
This is why I love expansion PE in China. There are more than three sectors to invest in!