New Delhi, May 28 (IANS) China, including Hong Kong, accounted for 93 per cent of the value of all intellectual‑property infringing goods seized in 2024, a new report said, adding that the country’s dominance in the counterfeit economy threatens “international trade and consumer safety”.
The report from Nepal-based media house Hamrakura cited a 2025 report that mentioned 37 online markets and 32 physical markets worldwide that facilitate counterfeiting, with China hosting some of the most notorious hubs.
Some of them are Baiyun Leather Trading Center, Huaqiangbei Electronics Malls, Luohu Commercial City, Kinsun Market and Wu’ai Market.
Though footfall in these markets dropped, they serve as distribution points for online sales and “sample testing” centers for counterfeit merchandise.
Chinese e‑commerce platforms including DHgate, DouyinShangcheng, Pinduoduo, and Taobao act as major facilitators of cross‑border counterfeit sales.
The report warned counterfeit products pose serious health and safety risks, citing a 2023 South Korean government investigation that found some counterfeit items contained carcinogens at levels 930 times above legal limits.
“Substandard counterfeit toys, electronics, and cosmetics can endanger consumers, while pirated digital content often exposes users to malware,” the report said.
The report argued that China’s dominance in counterfeit production is systemic, linked to the CCP’s economic strategies.
Analysts alleged that the CCP benefits directly from intellectual property theft aiding its military modernisation.
“Economic espionage and counterfeit production provide access to advanced technologies with dual civilian-military applications, including artificial intelligence and surveillance systems,” the report said.
Experts estimated that China’s theft of US intellectual property alone costs up to $600 billion annually to the American economy.
Stronger international cooperation and customs enforcement along with technological solutions such as blockchain for supply‑chain verification, and public awareness campaigns to curb demand are essential in containing counterfeit economy.
“The counterfeit crisis has become a geopolitical weapon, undermining trust in global trade and eroding innovation,” the report noted.
—IANS
aar/pk