Two things do happen in China:
1. Second grade production items are sold through different channels
2. Copy and produce goes in a big way
What if I told you that sometimes second grade maybe better than original?
What if I told you that a copy may realise faults and correct them?
What if I told you that sometimes the "copy and produce" companies are the actual manufacturing companies and that large corporations just put their logos/brand on it and mark it up and hope no brainer consumers don't realise.