The Economist:

CHINA’S president, Hu Jintao, speaks often and forcefully of the need to foster innovation. He makes a strong case: sustaining economic growth and competitiveness requires China to get beyond mere labour-driven manufacturing and into the knowledge-based business of discoveries, inventions and other advances.
Yet doing so will be hard, not least because of the country’s well-earned reputation for pervasive academic and scientific misconduct. Scholars, both Chinese and Western, say that fraud remains rampant and misconduct ranges from falsified data to fibs about degrees, cheating on tests and extensive plagiarism.
The most notable recent case centres on Tang Jun, a celebrity executive, a self-made man and author of a popular book,”My Success Can Be Replicated”. He was recently accused of falsely claiming that he had a doctorate from the prestigious California Institute of Technology. He responded that his publisher had erred and in fact his degree is from another, much less swanky, California school.