Nevermind counterfeits, What about the same product ?
Western company contacts Chinese Factory's to produce X,000 items.
Factory produces items to contract.
Having gone to all the effort of setting up a production line, and a supply chain, , why not run it a little longer ...
Western company now finds itself competing against, effectively, its own product with no obvious recourse ..
Helps if the item is a commodity, or can be easily re-branded ( sometimes they don't even go to that effort for other markets ...)
Thanks western capitalists!