Most IP theft is illegal in China and the government shuts down fake shops relatively often... It just happens nowhere near often enough to stop 99% of it. Hey, it brings money into the local economy so it's not like they have much incentive to protect the IP of foreign companies.It's a never ending story indeed.
But prosecuting retailers isn't going to do much either.
Cause for every shop that's taken down, 5 more pop up.