For a while, they have been researching China as a prime expansion target. Particularly due to the large IT infrastructure. That, combined with the extreme youth of the virtualization market puts them at a distinct advantage over their competitors, such as Microsoft and Xensource, if they manage to pull it off. Microsoft, on the other hand, has typically had a bitter relationship with China whom they pinpoint as a ripe source of Windows piracy.
Growth into China would probably be a great move for VMWare, who eventually must decide on an expansion path before they are crushed under the weight of their own rapid growth.