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It's most likely the latter. Groups that make products like these rely on the fact that they're government is either impotent or doesn't care. We see a similar phenomenon in China. Every now and again, we hear about lead in baby formula or something like it. For all the power the Chinese government wields, they only care about stuff like this when there's a serious problem. They mainly take action at that point just to save face.

I wouldn't rule out the possibility that these mass produced illegitimate copies being from China.

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