China Stops Enforcing Counterfeiting Laws

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Almost 90% of all counterfeit consumer goods originate in China with
international brand names such as Prada, Gucci, Apple, Microsoft, Rolex and thousands of others.


The Chinese government passed laws to criminalize counterfeiting and that acted as a deterrent, for a while. Since the economic downturn began late last year, the Chinese government has made it clear that they will no longer prosecute counterfeiters with less than $7,000 worth of products in their possession.

This opened the floodgates for counterfeiters who simply limited the quantity of goods they offered for sale. Prosecutions have ended and counterfeiting is big business in China once again.

Counterfeiters usually rely on their friendships or associations with employees of major corporations to borrow the latest invention for a day or two and reverse engineer the product.

This results in $500 cell phones being reproduced and retailed for $75.00 but often without the same quality component parts as the original.


Since economic conditions are difficult worldwide, there is less resistance from the consumer for counterfeit goods. As long as it works, and it is inexpensive, and looks like the original it’s good enough to purchase.

More than $250 Million in counterfeit goods were confiscated and destroyed by US Customs last year and this year the total could be much higher. Regardless, tons of merchandise stills makes it through and finds its way to the sidewalk merchants, flea markets and yard sales throughout the United States.


As one merchant stated, “If it works fine then who cares if it’s a copy. If the price is low, no one complains and these products have s short shelf life anyway. Brand-new today and next week there is another new model to replace it so these products don’t have to last for years. Quality is not that important anymore.”

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