“Around half the counterfeit goods found in Europe originate in China”, Peter Mandelson, British Commissioner of the European Union for Trade has been  quoted as saying.

For an economy of its size, China has enjoyed unprecedented growth. According to some estimates, China is on-track to soon have the world’s largest economy, which is a remarkable achievement for a country that only several decades ago was barely keeping its head above water, with people living in third-world conditions.

China’s current massive problem with counterfeiting has its roots in Foreign Direct Investment (the most important component of which is often patents, copyrights and trademarks). Simply put, a trademark such as Nike or Coca Cola is worth much, much more to that company than the millions of dollars in capital that it has invested in China. Whilst a transfer of technology is being created through FDIs, which is being absorbed into China’s legitimate economy, the illegitimate economy is also benefiting from some of this intellectual property as pirates steal the technology to engage in counterfeiting and other forms of commercial piracy. Add to this an ineffective local enforcement and a lack of deterrence and the conditions are ripe for producing a veritable hotbed of counterfeit crime. The counterfeiting process itself has become incredibly sophisticated. Gone are the days of “fake” just meaning dodgy copies of DVDs and t-shirts; counterfeiters are now using “reverse engineering” to copy sophisticated MP3 players, video game consoles, and mobile phones.

With a problem of this scale it is obvious that any traveller to China wanting to make a purchase of whatever kind, must constantly be on the lookout for counterfeits and fakes. This is especially so in the case of buying medicines. When you are feeling unwell in a foreign country  you can be particularly disorientated and therefore vulnerable. Be aware that counterfeit drugs are a real problem in this part of the world and travellers in need of regular medication should take enough supplies from home so as to avoid buying overseas.

Avoid notorious fake markets
Most, if not all, major cities in China will have markets dedicated to the sale of fake products. Your guide book will probably even tell you where these are. In Shanghai, for example, the most celebrated fake market is situated in the Pudong district.

Follow the General Tips on Buying Abroad given above especially closely with regards to China.
Click here for a list of Hong Kong shopping centres .

The Hong Kong Tourist Board website also has lots of information on shopping in Hong Kong, and where to do it.

Highly sophisticated counterfeits are even making their way into reputable supply chains here. And everything, absolutely everything, gets counterfeited in China. Here is a selection of items and brands to look out for, together with links to sites describing how to avoid forgeries:

Antique Chinese clocks
Chinese antiquities
Coins
Chanel
DVDs
Gucci handbags
iPod
Louis Vuitton. Louis Vuitton products are only authorized to be sold at Louis Vuitton shops.
Prada
Rolex

How to detect fake Chinese currency
Counterfeit money in China is a problem: "Last year, Chinese police seized 1.17 billion yuan in fake banknotes in a 10-month campaign against counterfeiting, arresting nearly 6000 suspects, according to state media reports". (Click here to read the full article, published in 2010).

Even locals have difficulties in identifying fake money. The Chinese currency is Rinminbi (The people's money), RMB for short. Chinese currency includes bills and coins. Click here for a comprehensive guide on how to identify counterfeit bills.

Click here for an interesting blog on Beijing, including excellent images of fake and genuine Chinese currency.

For constantly updated news and information on counterfeit items in China, developments in anti-counterfeiting and what to watch out for, see the Recent News panel on the left.

Who to contact
State Office of Intellectual Property Protection of the P.R.C
Address: State Office of Intellectual Property Protection, Ministry of Commerce, No.2, East Chang'an Street, Beijing, China (100731)

General Administration of Quality Supervision, Inspection and Quarantine
E-mail: webmaster@aqsiq.gov.cn