Lots of stuff I've been involved with has been knocked off overseas. The government knows, has the tools to mitigate it, but doesn't care.
Patents and copyright are useless to enforce anything to do with China. Getting a judgment is a long process and costly, collecting on a judgement is effectively impossible.
Customs enforcement used to try and enforce some IP protections but these days no one has any time for it.
That's why you can order machineguns and suppressors from
wish.com..
China is unsafe for business, unsafe for customers.