According to the Beijing News, about 100 million yuan ($14.5 million) worth of fake products are produced each year in Duliu, the Tianjin town in which the con was uncovered.
The products have been sold across the country, and the ring of factories were in operation for over a decade, said the report.
Ingredients for the fake food seasonings include tap water and industrial-grade salt, which is banned from human consumption in China because it can cause damage to the liver and kidneys due to the presence of cancer-causing agents and heavy metals.
Factories also bought spices and herbs that had already been used, such as star anise and pepper from nearby factories, then dried them and ground them into powder.
The operations are carried out in squalid conditions, with many factories operating inside dilapidated buildings.
The Beijing News reporter accompanied a police raid of the factories, after years of successful evasion by the counterfeiters.
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