Here in China, we use 80/20 as a rule of thumb: 80% of the products in a given market will be "fake." In my case, we find that about 80% of the competitors in the engine markets are selling non-compliant engines. One example: One of our competitors was selling an aftertreatment "catalyst" at retail for less than our material cost. So, we bought one and cut it open. Iron. No platinum or other catalysts. Well, pretty hard to compete on price when the other guy doesn't have to follow the rules.
After living here for a year, I can tell you that "Money is King" in China. Nearly every single person is constantly on the hunt for where they're going to get their next infusion of cash. Putting enough money in the right hands can get you nearly anything, ANYTHING that you want. Until that cycle is somehow broken, China is going to continue to run headlong into the future with little concern for the long-term well-being of its environment and citizens.