Reciprocity is a recurring issue in open-source, and I don't take the doom-and-gloom take, or the pretty optimistic take of this author. It's happened many times in both software and hardware (ElasticSearch, Arduino), and while it does help make your company a standard... it also can severely hurt the original company. What's the point of being the standard, if you've been hurt by it instead of benefiting? Obvious ex…
Presumably, the Chinese employees are not paid or treated well. But that is not a given. Nor is it a given that the Italian employees are paid or treated well.
How about we bar the sale of any product domestically unless its manufacture has been certified to conform with local regulations regarding labor, environmental protections, etc.? Thus, a U.S. company would have to pay to get certified before they could sell in Italy. And they would have to pay for surprise inspections, etc. to assure compliance. An Italian company would also have to be certified and subject to surprise inspections, but might not have to pay for those directly if Italian taxpayers are willing to cover the costs. For that matter, they may also choose to cover the costs for Chinese manufacturers.
If you are objecting to the unfairness of having to compete under different rules, let's address that. If the complaint is that one party pays for the R&D while another party reaps the profit, let's address that. These are not the same issue. If the complaint is that people prefer to pay less for an inferior product, that is also a different issue.