On the other hand, at least the American supplier was fined and someone went to prison. Fraudulent Chinese suppliers routinely escape justice altogether because they largely operate outside of US jurisdiction.
That's the essence of the issue exactly. There is fraud everywhere, but in most of the world fraud isn't a successful business model. In the PRC, it kind of is.
Although fraud is no doubt rampant in Chinese industry, the penalties are... rather more severe. You had better make sure your scheme doesn't piss off the wrong people. The PRC's military and aerospace supply chains are probably in pretty good shape.
Agreed, but the scenario we’re discussing is a US company sourcing parts from a Chinese company. The PRC’s stiff penalties don’t protect the consumer in this scenario.
