An English dictionary will give several explanations for the word “flattery” and is has been said that it is the sincerest form of flattery. However, as someone who is involved in a small business (photo studio and secretarial services) in China, I don’t see imitation as any form of flattery, rather an overt attempt to compromise our business.

That was an interesting post. Well, we all copy; although, a bit blatant to copy next door, I'd say. I shouldn't imagine he wants to compromise your business as such, but merely to enhance his own- those two not always being inextricably involved, if there's bags of room at the trough, which you appear to indicate is the case- haha. Just play it cool-don't fly off the handle. God, you people should pay me for all my good advice!