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Even a lot of big companies in the US subcontract to Chinese companies to avoid all the problems we have in the US. Yes, you'd be surprised the people I see there regularly from big name brands. Quiet frankly, I found product development that way a lot easier for me than actually going through the hoops in the US as I'm able to gain enough capital to actually do the real research required for doing things the "right way" later, after I'm, you know, actually making money to do it. Yes, I've actually ignored doing all the costly EM testing for quite a while now. And yes, I've taken advantage of self-certification to the extreme. Do I have a product that's selling? Yes I do. Would I have a product selling if I did it in the US? Most likely not. Does that mean my product is a failure? Probably not considering how much revenue it's bringing me.
A lot of the industry wouldn't exist if people didn't take risks. A lot of ideas can be pretty expensive and out of reach for a single person to make possible, even to demo or make a mockup. This risk aversion in the US (especially) right now is turning the industry backwards and killing us, when we need more investment in the industry. Yeah, there maybe con-artists and/or cancellation because of lack of funds, but that's what risk is about.
So it's not as easy as you think to transition away from Windows XP knowing that it's going to cost a fortune to try to get your old software to work on Windows 7 or Windows 8 and Microsoft offers no real solution for it.