They've been trying Chinese expansion ever since they created their IQUE subsidiary. They tried to sell a custom N64, NDS, DSi, and 3DS down there under the Ique brand. I don't think it has been successful by any means.
I'm aware, but those were pretty limited as far as the number of games. From recent statements, Iwata seems to be looking into more appropriate pricing and a whole new console crafted to the unique culture of the market, rather than modified versions of older consoles.
Very vague statements and it could go either way, but the market in China is obviously a different place now than it was a few years back and Nintendo seem to be taking an entirely different approach.