China occasionally make a bit of a show, finds some manufacturer that has fallen behind in payments to local officials and then makes an example of them and their counterfeit products. Business Insider shows though what happens in China when a major crackdown is announced:
When a local government in Shenyang, China announced a crackdown on counterfeit goods, ninety percent of store owners responded by shutting down, creating a veritable ghost town.
This event has grave implications for the future of copyright/counterfeit/patent reform in China.
China can’t crackdown on counterfeit goods without putting most stores out of business.
Local authorities clearly learned this lesson, as seen in what they did next. The Shenyang authorities held an emergency meeting in response to the store closures and announced that they were not conducting a crackdown and asked stores to reopen.
China simply doesn’t care.