Since we all know the sky-high piracy level (95%) of China, in which way artists/labels can still make profit in China?
First you should know, the whole piracy copy stuff is not the real or at least not the only damage factor for chn. music market. Furthermore there are also different kind of illegal copies; most of them are done by real companies though, so the copyright holder can sue those other smaller companies who are stealing copyrighted songs and get a part of the damage paid back that way.