The year that AP made the first Dream Sky release they definitely used a not-okay Chinese factory. The factory was so not-okay, in fact, that they made surplus dresses and sold them before AP even released their own dress. It's actually one of the better replicas out there, but also one of the most recogniseable, they didn't have access to AP's extra trims (buttons and such) so the dress has completely different trim and generic decoration.
I like to think that taught AP a lesson to scrutinise the factories harder and chose one that they can trust, hopefully this also means the factories also have more ethical owners that do pay standard wages to their staff.
But of course, it's really hard to figure out which brands are ethical or not, this isn't info that you can easily look up. There's some indie brands where the clothing seems to be a one-person operation, but even on taobao the rest are really opaque about their process.
As for a living wage, in some countries this amount just isn't all that high. In general I just think live and let live. Yes, I'm not paying all that much for a taobao dress, but if I don't buy it, this might be some factory's dying order and then once they go out of business some chinese families will starve because their father (mother?) got laid off due to the factory closing, which has to be even worse than receiving minimal wages from a sweatshop. Not saying it's right, but there's so little transparency it's hard to tell.