Recent media reports from China revealed disturbing news on the making of fake eggs with synthetic resin and pigments. A number of investigative reporters across regions visited "fake egg masters" who hand make and assemble egg yolk, egg white and eye shells. These fake eggs are being sold as regular, edible eggs. Consumers usually don't find out until they notice the unusual texture of the eggs during cooking or eating.

Photos and videos of the process are posted online, such as here. So far, there is no official conclusion on the effects of these fake eggs on human body. But media reports have quoted experts advising consumers not to eat them.

There is a lot that can be said about this, from business ethics to consumer rights.

We all know that China needs better enforcement of intellectual property laws, but in this case, who owns the intellectual property of eggs? Mother Nature? Ironically, the egg counterfeiters actually claim their "independently invented production techniques." One counterfeiter said he spent years developing "innovative" methods that make fake eggs "flawless".

Coincidentally, earlier this month, the owner of an injection molder in Wuhan said it took him hundreds of thousands of yuan and two years' of "research and development " to come up with "quality knockoff car parts." The operation was busted by authorities, according to the government Web site.

What the two cases have in common is that the ultimate goal is cost reduction, which seems to be what some Chinese businesses embark on. You'd wonder why they are willing to invest the capital, time and talent on knockoff projects? Why wouldn't they do normal, legit business?

Among all reasons, I think an important factor is the severe deficiency of business knowledge and skills that are required in original product development, launch, marketing and brand management. It's easy to imitate, no matter how hard the imitation process is. It takes much more to develop marketable and profitable new products from scratch. Many Chinese businesses understand their weaknesses and simply decide to take a short cut by making knockoffs. Meantime, the government is not doing a job of banning these illegal and unethical shortcuts.

These shortcuts don't lead to real, sustainable success. They bring short-term financial gains for some individuals, but also cause long-term damage to the society.