Your argument as I understand it is "Hey if I/companies don't do what's needed to survive, someone else will do it anyways, and I/companies lose". Just because some other group is willing to do unethical things (i.e. at all costs) doesn't make it ok for your company / you to do those things.

People generally cheat and do unethical things to "win" or "not lose". The reward doesn't make it any more ok.

Also, I can't believe I'm explaining this.

The memo was pretty literal - "someone might die", "things we have to do in China". Sounds like they truly meant "all cost".