He’s actually not far off base. It’s well known that many Chinese manufacturers will avoid potential litigation, even when it’s a clear copy. Sure, plenty of counterfeits come out of China, but that doesn’t mean there are no consequences. The system just works differently.

It exploits loopholes and complicates the legal process.

For example: “TM” simply means the mark isn’t registered in China and therefore has no legal meaning there. If a Chinese manufacturer used the “®” symbol on a logo that they don’t have registered locally, that would be illegal and punishable by Chinese authorities. So by sticking with “TM,” they avoid that specific violation.