China, including Hong Kong, accounted for 93% of the value of all seized intellectual-property infringing goods in 2024, posing a threat to international trade and consumer safety. A report highlighted 37 online markets and 32 physical markets worldwide that aid counterfeiting, with China hosting major hubs like Baiyun Leather Trading Center and Huaqiangbei Electronics Malls. Despite a decline in foot traffic, these markets continue to serve as distribution points for online sales and testing centers for fake products.
Chinese e-commerce platforms such as DHgate and Taobao play a significant role in facilitating cross-border counterfeit sales. The report raised concerns about health and safety risks associated with counterfeit products, citing instances where items contained carcinogens well above legal limits. It emphasized the dangers posed by substandard goods like toys, electronics, and cosmetics, along with pirated digital content that exposes users to malware.
The report attributed China’s dominance in counterfeit production to systemic issues linked to the country’s economic strategies. Analysts suggested that intellectual property theft benefits the Chinese Communist Party’s military modernization efforts. The theft of US intellectual property alone by China is estimated to cost the American economy up to $600 billion annually. To combat the counterfeit economy, the report called for enhanced international cooperation, customs enforcement, and technological solutions like blockchain for supply-chain verification.
Efforts to raise public awareness and curb demand for counterfeit goods were deemed crucial in addressing the growing counterfeit crisis. The report highlighted how counterfeit activities have evolved into a geopolitical weapon, eroding trust in global trade and stifling innovation.
