Apple has a lot of guts to take on a Chinese company on their own turf. However I think the winds are shifting in Apple's favor as the Chinese market warms up to the brand and the Chinese government warms up to the extra import taxes.
Heres what I wish I knew, who started this 'Zhizhen Network Technology' and with who's money. Many tech startups in Pudong accepted large amounts of government money. I wouldn't be surprised if this startup didn't really take off until after Siri was announced. It sounds like Chinese business logic to me, "If it works in the west then we need a home grown version of the technology here in China."