ST, more to the point it was the Chinese that Taught the Japanese how to make swords, its just one of those things that are overlooked because swords are such a japanese thing.
China flooding the world market with good only illustrates our points, every country wishes that its good would be accepted the world over, and just like everywhere else on the planet, china produced quality and crap.
For example, i collect bladed weapons (that i keep in my house, with no license and no government interference by the way). I have a set of cheap samurai sword that i bought off ebay very cheaply. Their crap, only made of 440 stainless steele they would shatter if i hit it against anything stronger than a carboard box, they cant cut through anything more than a sheet of paper.
I also own a Paul Chen Katana and Wakishashi that i paid hundreds of dollars each for. These a handmade, differentially tempered fully functioning sword that will slice through anything, it has genuine rayskin on the tsuka and quality iron Tsuba, you could quite litterally go into battle with these.....
Also you have to remeber that china isa pseudo-democratic communist country so alot of the shipping out of the country will be done on government ships, it dosent mean they codone what happens....