I've been buying Chinese guitars for quite a few years now. A couple I play, the rest are on hanger in my studio, looking nice. I've never sold one because while I am happy owning them, I can't sell them as genuine - because that is legally and morally wrong. Using them myself is a personal choice I can live with. I'd rather scratch and ding a copy than a genuine brand when I'm playing live.
I have only got one that I don't like, and all the negatives detailed in this and other topics have not happened to me.
I detailed in another topic yesterday
http://www.talkbass.com/forum/f8/am-i-out-line-jerk-1012043/index2.html#post14813830
how the Chinese system works - not a mega factory system at all.
All the guitars I actually play have been set up by my local expert, and re-strung with decent strings. He filled a couple of frets, but apart from that no major work needed.
I've currently got these guitars
Les Paul - beautiful with Tree of Life inlay on neck
Les Paul - nice inlay on neck (and my favourite of the three to play)
Les Paul - Peter Frampton signature - the worst of the three, playable but not as nice.
Strat - a red one with maple neck. Sounds and plays nice.
Tele - story below, but now a great sounding and easy to play guitar
335 - the only one I don't like, poor machine heads and just looks old, with yellowing binding.
In the other topic I linked to, I explained the people in these assembly rooms really don't know much about what they're doing. When the tele arrived, the neck wasn't attached. Examination showed the 4 neck screws were just stupidly short! Whoever put it together simply used four screws that only went into the neck about 5mm! I replaced them with the correct length ones, and added for security one extra one, and it's fixed. The seller returned £50 of the price on seeing the photo I took as I said I could fix it.
The Chinese culture makes these guitars ok to sell, because customers worldwide wish to buy them, and they do not see what they are doing as wrong. Lots of people disagree, but I suspect far more buy these instruments for their own use. If you are considering buying a budget guitar, there is a lot of what we call in the UK, snob value. A young friend of mine has a Fender Squier that plays very nicely, but now he's earning money, he's bought a real Strat because people who don't know, look at a guitar and make a judgement.
I understand real brand owners feeling cross about the counterfeits, and when I see idiots selling them on ebay as only slightly used genuines, I'm pretty annoyed too.
Here's a question. On youtube there are some great videos about people customising guitars - fitting a Fender branded genuine neck (I saw one yesterday using the Jeff Beck neck) to a body claimed to be better than Fender's. The one I watched had a solid top and everything was fitted from the rear so no scratchplate.
link here
https://www.youtube.com/watch?v=GmNerhTLaro
So if this was labelled as Fender with no Fender parts, it would be counterfeit - so the addition of one genuine Fender item changes it to a Fender custom? They won't do it of course, but would a Chinese factory selling with a Fender neck be selling counterfeits or customs? Fender sell parts, so is there some kind of official percentage where the status of an instrument changes.
I couldn't afford to buy lots of genuine guitars, but I can buy lots of Chinese ones.
As for the pictures - I buy from the ones who say this is the one you get, and have taken dreadful photos leaning up against walls etc.
I've just ordered a 5 str Jazz Bass, which looks great in the pics, but doesn't seem to have an exact real Fender equivalent. It seems to have features from a number of different versions. Looks nice, though!