If it’s a perfect 1:1 copy why does it matter? Can you explain how this isn’t just a stance rooted in xenophobia?

First of all: very often it’s literally a 1:1 copy.

Secondly: imagine you make an innovative product. I don’t know, automatic fence painter, whatever. It sells well, but you don’t have the money to start a large-scale production, you’re doing OK with sales and are looking for investors, but things are fairly slow. In comes a Chinese dude, buys one auto-painter from you, brings it home, dismantles the thing, copies everything (potentially making some changes), and starts a massive-scale production in his factory. Due to the mass-production, worse materials, and lower labour costs, he sells the product at 20% the price of yours. The market is saturated with his knock-off, you’re left with zero money.

Is this xenophobia to you? Or someone stealing your product and killing your business?

The goal of the vast majority is to be acquired

Yeah, I’m not talking about them being acquired. What gave you that idea? I specifically used the words “steals their idea”.