Though from certain POV these devices exist despite government policies, as the phenomenon has certain anti-authority connotations:

http://en.wikipedia.org/wiki/Shanzhai

So what? U.S. government free speech policies allow citizens to say most whatever they like, including things that cannot legally be said in Islamic theocracies. When a U.S. resident inevitably exercises his freedom of speech in a way that offends Muslims, would someone in Saudi Arabia therefore be justified in claiming that "the U.S. insults Islam"?

No, of course not.