These things aren't done in labor camps. The kind of stuff done there is generally breaking rocks and clearing forests. Chinese penal colonies are something that predates communism by a couple of thousand years. In the old days, convicts were branded with hot irons on their faces, like cattle stateside.
The fact is that in China, the practice of substituting inferior products for the real thing is being carried out in a legal environment that is so loose that in many cases, it isn't even illegal. Why was it so loose? Previously, nobody thought to worry about enacting such laws because the government used to be in charge of making everything. The opening of the Chinese economy to private businesses in the late 1970's changed all that. These days, unqualified but energetic entrepreneurs are testing their products by using small quantities on themselves, and then going to market if they don't get sick. The problem is inadequate Chinese regulation and corruption, not slave labor camps or a Chinese conspiracy to poison Panamanians. Or Jamaicans.
I beg to differ, Communist China is one big labor camp.