China Dominates Global Counterfeit Goods Market, Threatening IP and Consumer Safety

The United States Trade Representative (USTR) has once again highlighted China as the primary source of counterfeit goods worldwide, detailing the issue in its ‘2025 Notorious Markets List for Counterfeiting and Piracy’ released on March 3, 2025. The report identifies 37 online and 32 physical marketplaces globally involved in trademark counterfeiting and copyright infringement, with China hosting the majority of physical markets of concern.

Extent of Chinese Counterfeiting

According to the USTR report, intellectual property (IP) infringing goods seized by U.S. Customs and Border Protection (CBP) in fiscal year 2024 were overwhelmingly sourced from China (including Hong Kong), accounting for approximately 93% of the total based on recommended consumer price [USTR Report]. The report notes a rise in counterfeiting activity coinciding with a worsening economic situation in China, with offline stores increasingly used as logistics hubs for online sales and product testing.

Specifically, the USTR identified five major Chinese markets of concern: Guangdong Province’s Baiyun Leather Trade Center, Huaqiangbei Electronics Market, and Luohu Commercial City, as well as Guangzhou’s Kinshen Market and Liaoning Province’s Uai Market [USTR Report]. India and Mexico were also flagged as countries of major concern.

Online Piracy and Sports Broadcasting Rights

The report also addresses online counterfeiting, listing popular Chinese e-commerce platforms such as DHgate, Douyin, Pinduoduo, and Taobao alongside traditional piracy sites like 1337X and The Pirate Bay as platforms facilitating the sale of counterfeit goods [USTR Report].

Infringement of sports broadcasting rights is a growing concern. The NFL, NBA, and UFC estimated losses of approximately $28 billion in annual revenue due to illegal streaming as of 2023 [USTR Report]. With the U.S. Co-hosting the FIFA World Cup, the USTR is closely monitoring the sale of counterfeit goods and illegal streaming activities.

Economic and Health Impacts

The USTR report emphasizes that China’s theft of intellectual property rights contributes to the strengthening of the Chinese Communist Party’s military and economic power. Experts estimate that IP theft causes losses of up to $600 billion annually to the United States [National Law Review]. Investigations have revealed significant health risks associated with counterfeit products; a 2023 Korean government investigation found carcinogen levels 930 times the standard in some counterfeit goods, raising concerns about consumer safety [National Law Review].

U.S. Trade Response

In 2024, the United States and China engaged in a trade dispute involving tariffs reaching up to 145%, which was partially eased in October 2025 with tariff adjustments to 30-50% [USTR Report]. However, following a Supreme Court ruling invalidating some Trump-era import tariffs, President Trump announced a 10% universal tariff on all trading partners, with potential increases to 15% or more for certain countries [USTR Report].