The number of products impacted must be far over the 1% claimed. There are whole categories that have been ruined by Fake China and kids' toys is probably the worst. Headphones, as mentioned by another commenter here, are another.
This problem is quickly destroying Amazon's credibility with a lot of customers. I went to a Best Buy for the first time in a decade to buy a pair of iPhone headphones, just so I'd be assured a genuine product. I now buy my kids' toys at Target, just so I can be assured that there's a reasonable chance that they aren't crap.