Book exposes Chinese counterfeiter processes

A new book explores the emergence of China as a hub for the trade in counterfeit goods, and lays out the tactics used by those in the illegal trade to access markets and evade detection by the authorities.

Counterfeited in China: The Operations of Illicit Businesses, authored by Rutgers University professor Ko-Lin Chin, is based on face-to-face interviews with counterfeiters based in counterfeiting hub Guangzhou – business owners, workers, facilitators, and key informants – that reveal how businesses that design, produce, and distribute fake and unauthorised luxury goods manage the risks inherent in their business.

Chin also discusses the role of Chinese authorities and other parties in the war against counterfeiting, providing new insights into the modus operandi of counterfeiters, and looks into the demand side of the equation by evaluating the relationship between sellers and buyers.

"Counterfeiting is a serious crime," commented Chin. "Despite advances in security and detection, it continues to have far-reaching effects on economies, businesses, and people. Efforts to combat this crime must involve understanding how and why counterfeiters operate."

Counterfeiting tops the list of organised crimes committed worldwide, raking in nearly half a trillion dollars in 2019. These illicit businesses impact consumers, workers, brand owners, state authorities, and the overall economy.

For example, counterfeit luxury goods like handbags and watches are commonly sold to unsuspecting consumers and divert revenue from legitimate producers. Moreover, the proliferation of counterfeiting has fuelled the advancement of other types of organised crimes, such as human trafficking, drug trafficking, and money laundering.

The global trade in counterfeit goods was worth around $467bn in 2021, or around 2.3 per cent of total global imports, according to a recent report from the OECD and EUIPO. China (and Hong Kong) continues to be the primary source of counterfeit goods, accounting for 47 per cent and 27 per cent, respectively, of the total value of seized goods from these two economies in 2020 and 2021.