This is laojiao, not laogai, these people haven’t been convicted of any crimes and this is administrative punishment for unharmonious but not criminal behavior and thoughts.

The west is held responsible for Chinese behavior by the Chinese themselves. Notice how China was criticizing the west for taking advantage of recycling contracts in China with terms that were too good to be true, and eventually were found to basically be dumping in China. Likewise, as you say, this is our responsible as well: we must make sure that we operating with Chinese businesses with acceptable labor practices.