globalEDGE Blog - By Tag: product-counterfeiting

China currently has a Coface rating of B for Country Risk and B for Business Climate. With high levels of foreign exchange reserves, there is a very low level of the overall risk of over-indebtedness, and the structure of a highly competent service industry with reliable infrastructure makes the market potential, comprised of several key factors, in China even stronger. However, it cannot be denied that investing in China as a manufacturing firm is beneficial but leaves the risk of counterfeiting and intellectual property violations on account of a collectivistic culture.

Counterfeit goods today are found throughout the world; wherever a demand for a product exists, counterfeiters quickly fill the niche. Counterfeiters compete undetected with brand owners, undermine brand profitability, fund the underground economy, and undermine brand reputation. A brand’s long-term success depends on protecting its integrity. Brand owners who do not believe they have a counterfeiting problem likely have not looked. ANY branded product can be counterfeited.