The concept of IP rights doesn't really exist in Chinese business culture. Your source code or any other proprietary technology is fair game.
I know startup founders that have raised Chinese money and not regretted it, but it's important that it be "dumb money", i.e. they give you cash and go away while you write an occasional investor update and grow the business. Active Chinese investors (i.e. anything where you give up board seats, decision-making power, strategic partnerships, etc.) are bad news. You want to be in a position where if your investors ask you for something you can just ignore them.
Ones who expect that the company in question is going to do well regardless of what they do and trust management to make good decisions on their behalf.
This is the same position that every retail investor, every LP of a venture or hedge fund, every shareholder of a company where the founder controls a majority of voting stock, and every person with a pension or 401(k) puts themselves into. You could argue about whether that's a stupid thing to do, but it's the vast majority of shareholders within the world, so stupid or not, lots of people do take that bargain.
This is quite standard in my (limited) experience. We're raising a seed round and I've spoken to nearly 100 VC firms. The most any have asked for is an observer seat.
I know startup founders that have raised Chinese money and not regretted it, but it's important that it be "dumb money", i.e. they give you cash and go away while you write an occasional investor update and grow the business. Active Chinese investors (i.e. anything where you give up board seats, decision-making power, strategic partnerships, etc.) are bad news. You want to be in a position where if your investors ask you for something you can just ignore them.