I suggest a different approach to this issue. You should not only let the Chinese copy it, but actually encourage them to copy it when the time is right. But try to make it not end well for them when they do copy it.
The Prolific USB to RS232 adapters are in this category. Prolific keeps changing the hardware and then making new Windows drivers that only work with the new hardware each time it gets cloned by the Chinese. The Chinese seem to be unable or unwilling to make a Windows driver. So the Chinese version only works on the older version of Windows.
1) Design and create a lesser version of your product that is made to be unreliable or to malfunction. When a Chinese buyer buys it to clone it, send them this version.
2) Allow the firmware to be read out from the MCU, but rig it in such a way that an alternate buggy firmware is read out instead of the real firmware.
3) Make a buggy firmware available for free on the Internet and let the Chinese copy this.
4) Have an enhanced version of your product to go out the door as soon as the Chinese clone hits the market.
5) Put undocumented features in your product that don't get cloned, and have an enhancement to your product available that only works with the legitimate version of the product.
6) Have your product produced at lower cost in another country that is not China. Keep the firmware programming local.
7) Use an MCU that is unavailable in China and must be purchased from the west.
![Cool 8)](https://www.eevblog.com/forum/Smileys/default/cool.gif)
Release repair documents or a reverse engineered project which contains false information which would help someone to produce a buggy clone of your product.
9) Sell your own clone of the product at a very low price, tricking the Chinese in to thinking that there is already a clone being made out there. The reliability should be so bad that the sales will be very low and you won't lose too much money on the clone. Accept free returns and then resell the units.
There have already been good suggestions and you can incorporate those things in to the product. How about a chassis tamper switch that switches the firmware out to a lesser buggy firmware if the device is opened?