You bet it is. Making adulterated or fake products and selling them as real pretty much defines the Chinese way of doing business. Anything coming from those people has to be viewed with extreme suspicion.
The Chinese do the same here in the U.S. when they can get away with it. Wisconsin ginseng has the reputation of being the best but sales have recently fallen sharply. The growers did a little investigation and found almost all ginseng, including Korean, is now labeled "Wisconsin" and put up in red, white and blue packaging.