Earlier this year we reported that China was considering a removal of its ban on video game consoles; it was a rule that was bypassed by TV plug and play systems, including a Nintendo offering called iQue which included Nintendo 64 games. Modern systems with separately sold retail games were, however, out of bounds.
As part of its continued drive to encourage foreign investment, China has now followed through with the expected legislation to lift the limitations. There are rules, however, which fall in line with what was previously reported; the hardware must be produced in the free-trade zone of Shanghai, while all products must be approved by the Ministry of Culture.
With China potentially on the way to officially being the largest individual economy in the world, it would be surprising if the big players, including Nintendo, declined the opportunity to tackle the market; it'll be interesting to watch. As indicated above, Nintendo would need to setup manufacturing in the relevant area and jump through some hoops before we'll see Wii U and 3DS systems sold legally in China.