From China Television and ApiNews (a news website for and about bees): 


Key points from the report:

The China Central Television report, however, wasn’t as timely as it claimed.

It reported on raids on four production sites which started on April 2 in Chongqing, in which five suspects were detained and 38 buckets full of artificial honey made from water, sugar, alum powder and colouring were confiscated.

Since 2010, the group have been producing honey for 10 yuan per kilo and selling it for 40 to 60 yuan. Hechuan farmers made fortunes with their honey; the forgers had exploited that reputation.

China is the world’s largest producer of honey and exports large amounts to the rest of the world.

Again, its a race to the bottom. The longer this goes on it drives out legitimate/legal operators as the forgers make extraordinary profits and the penalties are not severe enough to cause them to not even start. It is in the supply chain as the last sentence points out.