Hanaleimoon,
I hear you there, even everwhere online, you can see Tahitian Pearls being mis-represented as Chinese freshwater! Because everyone is so price conscious today, those dealers are getting away with it too. And of course, it is too bad that many of the "undeclared" pearls are making it to China. However the route is simple. The container makes to Hong Kong via Papeete, then from there it dispatches to the rest of Asia.
In regarding the market of China, yes it is capable that they COULD absorb all those pearls. There is a buying power in China that is unquenchable for the time being. We hope for it to remain in their domestic market, which is huge and developing. Similar to how the US Market was about 10-15 years ago. However, there always will remain a percentage that strives to re-export their merchandise abroad, this is where we'll run into problems. However, just like in any country...it's usually best that their "crap" is kept in-house. We'll never know how much of that will remain possible.
In any case, I have 1,000's of BCD strands of all shapes and sizes, legally declared and exported to Hong Kong, if anyone is interested, lol. The merchandise is now their, ready for export to the rest of the world. It is for this reason, I'm aware of what my competitors(for lack of a better word) are doing. In any case, we continue to move forward!