I disagree with the majority of people responding here.
I think the issue here is about more than video games, movies, music, etc... but about the enforcement of copyrights and patents in general.
I've criticized the gaming industry hardcore (plenty of my messages are doubtlessly still around), but in general I think intellectual property/patent theft is wrong. I also think it is a big issue internationally.
To put it bluntly, people spend countless dollars doing research, tinkering, and inventing new things either artistic or "temporal". When someone decides to take these things, produce their own version of them, and sell them for a fraction of what you did because they didn't have to pay the development costs... well that's an issue I feel.
To put things into perspective, using a gaming related example, let's say some artist designs a new type of designer jeans. They file the patent for it, and put them on the sheleves. People are paying for a specific look/fit someone invented before everyone else.
Someone in say China notices the manufacturing in the garmet shop, and decides to produce EXACTLY the same thing, perhaps even duplicating the label and manufacturing code of the real article. Then they release this product for 1/3rd the price of what the designer was charging, and he doesn't get any money for his idea.
A connected example would be something like say Viagra (which is a real issue). A recreational drug that cost a fortune to develop. The investers have a right to a return on their money and to make a profit. On the other hand if someone in another country decides to ignore the patent, mixes the chemicals, and then undercut's the creator's market... well that's wrong.
There is also not just an issue with the pirates, but also with the markets that want their cheap designer jeans, and viagra, but don't want to pay the creator for it. What's more in certain cases like with real medicine you even have nations with "socialized" programs becoming dependant on knock offs to run their programs.
There can be a lot said back and forth about this. I'm one of the first people who will sit there and point fingers at development costs, and when someone's profit margin on something is truely ridiculous. I'm all for people getting rich (don't get me wrong, I'm a HUGE capitolist) but I do believe in a certain amount of common sense... and an American type system of capitolism which puts some fetters on the whole idea by preventing, limiting (or trying to) things like monopolies and cartel behavior.
Also, piracy when it comes to actual products and research is going to shoot people in the foot. Simply put nobody is going to invest billions of dollars into making medicine, or improving technology, if they can't guarantee receiving a worthwhile return on that investment.
You might also notice that when I talk about things like video game piracy, I don't say the pirates are anything but thieves. I do however point out that in their case the industry they are robbing are also deeply corrupt. Making both sides wrong.
I understand the issues involved fairly well, and honestly I think that patents and intellectual properties need to be protected by goverments. But also I think goverments need to do more to regulate business, how it's conducted, and ensure competition (which increases quality and lowers prices).
That said, nobody should be unusually concerned here. The US is basically talking tough, it hasn't actually said it's going to actually do anything.
I'll also point out that if you invented something that cost you a lot of money, and then someone else took your invention (which is acknowleged to be yours all the while) and got rich off of it by knocking it off, while you are hard pressed to even break even given what you spent to make it... well, you'd be POed and want the goverment to do something as well.
With China in paticular is an interesting case because China managed to lure a lot of businesses overseas with the offer of cheap labour, but then took that knowledge and used it to produce knock offs of what they were contracted to produce for themselves, and sell them. China's economy is not booming because of big businesses paying workers less than US minimum wage, but because of the money brought in from what they steal, knock off, and sell based on those dealings... to give a very simple version of the accusations.
The problem with China is also compounded by their policies which exist to prevent much money from leaving China, and the amount of money a non-Chinese business can make there (and so on). People sit down NOW and talk about how the US should leave this alone, but in other articles which dealt with how China was treating US businesses like Blizzard (World Of Warcraft), the sentiments seemed to be very differant. Frankly I'm surprised to see so many complaining when that's exactly the kind of thing the US is trying to address.