It is very common in Chinese culture. Copy a viable idea, make money and disappear when problems seen. Chinese government has blind eyes for these crooks. On top of that they think Americans are fools and they make illegal use of the law.
Our judges know this but democracy comes in way. Can an American company do this in China? Its officials will be towed to jail first and then talk.
We can't even 'temporarily hault' the importation of illegal products. Too soft to be eaten alive.