Why China Can’t And Won’t Try To Eliminate Fake Goods

Business Insider

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.


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  • Mediaan

    I’m with China on that. I don’t care.

    If 9000 bright-eyed Japanese grls want to pay much more for a designer tote than the same tote with a non-promoted name …

    The world has gone barmy.

    The reason those fat old gits in west US wanted to enmuscle copyright in the early nineties, dim perception that ludicrously high profits were slipping out of reach with digital copying, doesn’t impress me.

    Neither does the reason the back room thronebums decided to support them: so as to control news. After the early nineties, news was property of the newspaper proprietor. It could also be censored and deleted. Prior to that, it was free and public like the air.

  • Kiwi in China

    China doesn’t care. Yet.

    It is doing exactly the same as the USA did in the C19, which did not recognise foreign copyright or patents until late in that century. Check out Charles Dickens’ raves against the terrible, dishonest Americans, who were the largest consumers of his prose, yet he never received a penny. This was the reason he toured the states, so he could make a quid out of them. They never paid rights.
    America changed its policy when they became net producers of innovation rather than net consumers. Suddenly they became very big on intellectual property rights.
    China will do the same when they turn that corner. As they are producing more than 100 engineering graduates for every 1 in the USA, that day will come within a few decades, tops. There is also no shortage of gifted designers in China. The Asian design ethic is amazing.
    And then they do start to make their presence felt as designers and innovators, the China-haters will whinge ever louder.

    As an aside, there is also an argument that all the knock offs make the real branded goods more desirable. There are now more LV shops in China than in all Western Europe.

  • Cactus Kate

    They are though buying up movie theatres in the USA. Wait until chinese own all the worlds top labels. Then they will take firing squads around to illegal markets and open fire on vendors. It is all about self interest