What’s worse, is if you’re not Chinese and you want to do the exporting, you’re gonna get jobbed. Thus, you have to have a Chinese contract you can trust to do the exporting, QC, etc. The Chinese government favors the Chinese (surprise) and there’s a lot of the abuse you talked about. Basically, China gets around to screwing everyone. As China gets more wealthy, it won’t be worth doing business in China any more because they’ll simply cost too much to get away with that crap.
I blame communist culture having a lingering effect on the morals of people who “want to be” capitalist. They completely don’t seem to understand honor. This makes them different from, say, Japanese, Taiwanese, South Koreans, etc., where honor is a BIG DEAL. Instead, they have “face,” which is like the appearance of honor. Hence all the knock-off products and fake expensive stuff.