Merely copying products that actual companies produce and making them cheaper is anti-competitive. There's no incentive for the products to be developed in the first place in a market if this is happening. This is why copy protections exist in civilized countries (not China and to a lesser extent India).
That's why IP was invented, but what IP are they infringing? Not patents, not copyright, not trademarks, so what? Making something cheaper than someone else isn't anti-competitive. There are a lot of businesses that do that. That's the very essence of competition.