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That's the industry as such... There are Russian, Israeli, Italian, French etc spies... everywhere where some kind of military tech is developed such passionate charades happen, It's an old cold war tradition.
And then NSA wiped out all the competition.
That's a fact, not something I made up or because I'd secretly hate Chinese. Chinese would do ANYTHING to make a business. Copy, steal, go the shortest shortcuts one can make to create products etc. And yes, that IS for a fact so deeply ingrained in their culture it's basically impossible to root it out now. Or ever probably. Don't mix in ancient China to Communist China. It's not related to one another AT ALL. What we're talking here is China of today and that's their global MO. Especially for companies that operate within China only because global laws pretty much don't apply to them. And this doesn't just go for our beloved electronics, they even do it for example growing of vegetables. They'll pour whatever chemicals and fertilizers they can get to make the thing grow at maximal rate regardless of how toxic and harmful it is to the end consumer. It's just business business business.
Only time Chinese companies have to actually begin obeying business laws and practices of the west is when they go global. Because they are simply forced into this. But having such massive market as China, basically anyone good enough at stealing and copying can become big to enter global markets. And it's easier to start doing that when you're already big than for example European or American startups that have to start from zero in a proper way without just copying someone's design and learning from that pretty much for free.
You can call me racist or Chinese hater, but that's all a fact, I'm more surprised you're not aware of it...
Ok, let's make the meaning of words clear.
When you say "engrained in their culture" in the reader is created an image of ancient chinese emperors making Ming porcelains as in Ghost just after stealing the procedure to produce it.
The truth is china was a rural, pre industrialization economy just until 1980. There is really truly nothing of what you perceive as their way of living "engrained in their culture".
Moreover, if you think that western patent system is something that can result in an advantage for the consumer you are wrong.
There is nothing that says that the western way is THE way. Open economical competition truly involve different meanings and levels of the word "copy".