I'm personally not aware of Canadian companies setting up counterfeiting networks in China. What we are aware of is that sometimes it's a partner, or an ex-partner, in a company who has acquired the know-how to produce the identical product, but one that is not licensed and therefore is counterfeit.
We have specific advice to give companies on protecting their IP and various steps they can take. Sometimes it's as simple as them having rushed into something without taking the necessary steps to protect their intellectual property.