Duff, Ch0jin, this is probably going well beyond the original point of the thread (sorry frankenfretter), but you raise some good points.

I haven't gone native and I am hardly an apologist for the very real abuses that exist in China and many other developing countries. But I must say that alot of the reporting that is done on all things China dwells overwhelmingly on the negative. Sure there are knock offs in China but they are hardly the driving force behind the world's second largest GDP.

Most of my business has had to do with violins. It is a very established industry, one that has taken many who lived in poverty to quite a decent lifestyle. Many violins sold as European instruments are actually 90% Chinese made. Laws in some European countries allow for a designation of "made in Belgium" (for example) if the distributor uses Belgian made fittings and set-up. These are usually quality instruments made by a skilled and upwardly moving workforce. I have paid anywhere from USD $50 to $8,000 for violins made in China. The top instruments are made by world class makers whose work sells for considerably less than some inferior European instruments merely because the general perception of Chinese goods is lower.

What I've learned in my past year around the Chinese guitar industry is that it is a rapidly maturing business. Although not as long established as the violin, thanks to the influx of foreign (mostly American and Japanese) expertise, China does now produce many excellent guitars. Certainly the export of knock-offs represents a tiny fraction of a percent of all exports.

I will relate one story when I first started checking out factories. The first factory I visited had a complete lack of ventilation in the painting rooms and nothing but paper masks (and often no masks at all!) for protection. I had to leave quickly as the fumes were seriously overwhelming.
My Chinese assistant, who has lower standards than I when it comes to workplace conditions, was appalled. After we left, I seriously wondered if I would be making any guitars in China. I was depressed and still shudder at the thought of the place. I have since visited many factories and have never again come across such horrible conditions. In fact I have found many professionally run businesses with very good safety standards/working conditions.

What makes the above story even worse, is that this factory is 100% foreign management who set up and manage it. Further, it is a factory that manufactures some OEM guitars that get great buzz on this and other forums. They don't produce knockoffs so far as I know.

I truly believe it is in the interests of the government in China to raise living conditions for everyone as, at the very least, it ensures their survival. It isn't happening without abuses however. With such rapid growth abuses can be difficult to police. But then there are still some sweatshops in the First world too...

Well I've expended enough air. Sorry for being so long about it.