The theft of U.S. intellectual property is one of the major income drivers for the Chinese Communist Party.
China is by far the top source of fake products worldwide, the Office of the U.S. Trade Representative (USTR) said in a March 3 statement on its yearly Notorious Markets List for 2025.
The 2025 Review of Notorious Markets for Counterfeiting and Piracy report highlights 37 online markets and 32 physical markets across various nations that are “reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy,” according to USTR.
Out of the 19 nations identified as hosting physical markets, China “continues to be the number one source of counterfeit products in the world,” the report stated.
China was also in the top spot in the 2024 list.
“IP-infringing goods from China, including Hong Kong, seized by U.S. Customs and Border Protection in Fiscal Year 2024 accounted for almost 93 [percent] of the value of all IP-infringing goods seized from all countries, as measured by manufacturers’ suggested retail price,” the report said.
“Counterfeiting activities have increased as economic conditions have declined within China. Although foot traffic to some physical markets has declined, sellers of counterfeit merchandise continue to use their brick-and-mortar storefronts as points of contact for customers, sites for ‘sample/product testing,’ and centers for fulfillment of online sales.”
The report listed five markets of concern in China that sell counterfeit goods—Baiyun Leather Trading Center, Huaqiangbei Electronics Malls, and Luohu Commercial City, all in Guangdong Province; Kinsun Market in Guangzhou; and Wu’ai Market in Liaoning Province.
India and Mexico were other major nations of concern, along with Argentina, Peru, Russia, Turkey, Vietnam, Brazil, Cambodia, Canada, Colombia, Indonesia, the Kyrgyz Republic, Malaysia, Paraguay, the Philippines, Thailand, and the United Arab Emirates.
Several shipments of counterfeit goods from China have been interdicted by U.S. authorities over the past year. On Jan. 29, U.S. customs officials seized more than $300,000 in fake products from China, including knockoff versions of Chanel and Louis Vuitton.
In November 2025, Customs and Border Protection said it had seized a shipment of counterfeit toys from China—worth more than $775,000—in Norfolk, Virginia. In June, Louisville customs officials said they took into custody 2,193 pieces of counterfeit jewelry originating from China and Hong Kong.
