Have you ever been to China, or delt? with the companies there? The government absolutely does not give a hoot what these small companies do on Aliexppress.
In fact, a very common insult used by Chinese citizens against the Chinese government is “They are Communist in name only”. This is very true. A better description of China is “The Wild West”. It is more like a country ruled by the most extremist American conservatives who want to abolish all “regulations” so they can just make more money. ("What do you mean I can’t dump my pig manure in the river?”) That is modern China.
OK it is slightly different with the larger mega-corporations as they are big enough to have some visibility. There, labor laws get enforced, sometimes if there is massive abuse. But the people on Aliexppress are literally mom and pop working from home or small offices. Most go bust but more spring up to take their place. I can absolutely say that no one in the government bothers to give a hoot and tax evasion runs rampant and is not enforced. As said “The Wild West.”
You forget the vast size of China. It is four times the population of the US but their government spends only 60% of what the US government spends. It is a MUCH, much smaller government per person then we have here. And contrary to what you might think wages or not so low. Minimum wage for factory work is about $1,200 per month. The average family of four makes about $40K. Why? The most common university degree is engineering. Most don’t work in those factories. Yes they buy cars, and computers just like we do.
The government there has far less resources to spend so they look at what they feel matters, the big guys, and ignore most of everything else.