Far from a threat. The arrival of clones on the market is expected and is necessarily a part of the plan -- everyone knows that a successful new product will be physically cloned overnight, which is why so much energy is expended on the brand, the associated services, the software, etc.
Meanwhile, this thing is a positive embarrassment for the Android brand. Or it would be if the word "Android" were ever publicly associated with the thing. Something tells me that Google's trademark lawyers -- and perhaps even this knockoff's manufacturers -- will make sure that this fact is not mentioned out loud except on tech news sites...