China Black Market: $79.5 Billion


Counterfeit Goods Losses to South Korea

Counterfeit products made in China cost South Korean firms $14.2 billion, equivalent to 5 percent of total exports, according to the Korea International Trade Association.
Source: “Chinese Imitations Undermining Korean Exports,” The Chosum Ilbo, January 15, 2007.

Human Smuggling Market in China

According to author Moises Naim, ” human smuggling out of China alone has been estimated between $1 and $3 billion per year”.
Source: Moises Naim, Illicit: How Smugglers, Traffickers, and Copycats are hijacking the global economy, (New York: Doubleday, 2005), pg. 88.

Spending on illegal drugs in China

A 1998 study stated that $17 billion is spent on illicit drugs in China every year.
 
Source:  International Crime Threat Assessment, “Chapter III: Worldwide areas of International Criminal Activity, China,” December 2000, available from Federation of America Scientists,  (accessed: March 9, 2007).

China’s Counterfeit Goods Market Impact on the United States

The United States Government estimates that global companies lose more than $60 billion due to counterfeiting and piracy in China.
Source: Bloomberg, “ U.S., EU Pledge to Fight Counterfeit Goods From China, Russia,” Bloomberg.com, June 19, 2006, (accessed: June 20, 2006).

Poacher in Taiwan can sell a bear for $4,500

Source: AFP, “Wildlife smuggling in Asia still a roaring trade,” Yahoo News, June 3, 2007.

At least 12,000 bears are kept on bile farms in China

Cathryn Atkinson, “Bear Detecttion Kits tested against smuggling,” The Globe and Mail, July 6, 2007.

$2.2 billion lost in business to piracy in China in 2006

The US content industry (movie, music, software and book industries) has estimated that its companies had lost $2.2 billion in potential business in China due to piracy in 2006.

81 percent of fake goods seized in US produced in China

In the United States, 81 percent of counterfeit goods seized by the Custom Department in Fiscal Year 2006 was produced in China.
Source: Associated Press, ” Counterfeit consumer goods could present health and safety risks,” Cleveland Plain Dealer, January 12, 2007.

80 percent of all articles seized by European Union custom agents in 2006 originated from China

Source: European Union, “2006 customs seizures of counterfeit goods - Frequently Asked Questions,” Press Release, May 31, 2007, (accessed: June 18, 2007).

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