There was a great documentary about it on a German TV channel (Arte) years ago. One name that got stuck is Märklin, since I know people who worked there. It wasn't the worst case though and the company still lives independently, after some rough times.

Not trying to say that either practice is good, but there tends to be a bias in perception, naturally. We're always the good guys and China is the evil 60s SciFi villain who's mostly just evil because he's evil, kind of.