I genuinely doubt that the level of theft ever rose to a large enough margin, if it did, Apple would have pulled out of China.
For reference, Apple employs ex-NSA, CIA, TLA professionals to solve this exact problem with a near endless budget and 0 oversight and accountability.
Most notably, one of the organisational leaders was caught bribing the sheriff's office for concealed carry permits, https://www.ft.com/content/e73676d7-c6bc-4b07-b9bf-9bd702f1f... / https://www.theregister.com/2023/08/29/apples_chief_security...
There was a point where the black market in China was making more on Apple products than Apple itself. They initially tried to have stricter warranty conditions in China as a fix, but state media decided this was an affront to the country: https://www.infoworld.com/article/2271627/apple-clarifies-wa...
Hence, the technical fix.
Why pull out when you can apply a technical fix and retain both access to the biggest consumer electronics market in the world and maintain the good graces of the country that manufactures almost all your products?
The checks are not entirely in software, and would not be in showing the error, either.