They already can't. HD and BluRay were different enough formats that you had to build them separately.
At first, I was going to say that the Chinese would be able to get around the issue on PC's with software patches, but the problem is more low-level, I believe -- Despite the software, the physical hardware won't read HD and BluRay the same.
As such, the DVD manufacturers would actually have to design, from a hardware point of view, machines that could read both formats, and I think Sony and others would easily be able to bring enough pressure to bear to nix that completely.
Only China would be able to ignore it and make them anyway, but then we're back to the question of getting someone outside of China to buy a Chinese player, *from* China, to watch pirated movies only available, again, from China, when you could get the same thing locally, for probably close to the same price, if not cheaper, and without any tech issues (like who to turn to for hardware problems, etc).
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