Claiming adverse effects on children, China banned all foreign console sales in 2000. Last year China began the process of lifting this ban. According to the BBC, China will temporarily allow foreign firms (Nintendo, Microsoft, and Sony) to produce and sell the consoles in Shanghai's free trade zone, after inspection by the cultural department. It should be interesting to see how the industry reacts to this opportunity.
There's no word yet on how long this ban will be lifted.