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In Shenzhen if your product doesn't perform up to spec, you just lose customers and go bankrupt. Not sure why the court has to be involved here. Isn't a free market capitalism economy supposed to work like that?


Chinese companies violate many of the norms that we take for granted, such as labelling things accurately. If a Chinese company makes things out of spec, it will not put its name on the product. If one of these companies does knowingly make an inferior product, a new brand/company might be formed just for that purpose. Also, free market capitalism works better with a means to enforce contracts such as the contents of spec sheets, because it speeds up accounting for deliberate bad behavior. Court proceedings establish facts that can communicate to the public what the company has been up to, versus possibly misleading rumors. Although the free market can eventually sort out bad information and unreliable actors, it works much better when information standards are enforced. False advertising wastes a lot of resources.




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