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I'd presume by Potemkin regulation, he means that regulations in terms of worker health & safety and consideration of the local environment are for show.

There is the other aspect of copyright violation and clones of products built when something is observed selling in the market. Still unresolved.

That said, when a few Chinese companies shipped consumer facing products that contained chemicals or other material that effectively poisoned people, my remembrance was that the management was executed.




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