Does it get down to this? When you look at an item that interests you, look at where it came from. If you have a problem with that country's idealogy, find a different shop.
We may be forced into becoming xenophobic, which is NOT why I came to Etsy. It is a world marketplace. It began with handmade items by Mom or Dad, or Mom and Dad, and will become by Mom, Dad, Uncle, fifth cousin, and great auntie, ad infinitum.
I can't imagine how the Integrity Department is ever going to monitor a million sellers, plus all of the new 'collectives', 24/7. A tremendous travel budget for inspections? I think not.