well it's totally wrong ... i mean taking for free the hard work of hundred of engineers and the financial risk to develop a chip or whatever product and not even change the name, and sell it on the market as a replacement for the original product is totally fucked up way to make money ...
Western companies do that all the time, they are just more subtle about it - use a different name and box, and it looks like a unique product. Companies do teardowns, analyse all the design and BOM, and see what can be copied. You can pay companies to give you a report.
I know several cases in the West where companies have completely ripped off other's products.
Anyway, it's called "competition", everyone tries to undercut each other, which is apparently what all Western governments are in favor of. Unless it's some people with a different color skin, then it's "unfair".
it's always unfair no matter what color skin they have, and i don't think western governments are in favor for that , since all western country have a set of law to protect IP and copyright and patented design.
now am not saying that western company are not doing that either, but it's totally less obvious to detect, and copying a part of a design is not as harmful for the original company as selling the copy as a direct replacement.