I was in China earlier this year teaching and noticed these discs start to appear on the streets, publicly. They are everywhere, you just have to walk down streets and some guy has a box to sell to you.
This has been going on for DVDs for years. I could walk down the street and simply select whatever movie for about $ .70. “Could” being the operative word, I only did it a couple of times to bring home examples.
The idea that the authorities “uncovered” this operation only a month ago is a complete joke. While they may not have known where it was happening, they knew what was going on.
The blu-ray covers are very promoninent in street vendors boxes. I have one right now I’m staring at I brought home. Fooled me at first too, lol.