Counterfeiting was one of the many charges laid by US President Donald Trump at China’s door at the beginning of the trade war.
While his protectionist measures may decrease the level of trade between states, they will not automatically prevent the trade of counterfeit goods.
Instead, it may have the inverse effect.
Tariffs will lead to higher costs of imports for both US and foreign companies, leading consumers to seek cheaper alternatives — like counterfeit products.
The trade war between the United States and China continues to spiral, with mutual tariffs now hitting $34 billion worth of goods on either side after Trump began his spate of protectionist measures in March. Many analysts, such as Mark Muro, have argued that the tit-for-tat tariffs will hit certain US industries hard, whereas others have pointed to the huge damage that could be done to the global trading system. But there’s another issue so far overlooked: The trade war will be a boon to China’s counterfeiters.
Counterfeiting was one of the many charges laid by US President Donald Trump and his trade team at China’s door. They’re not wrong; the Chinese fake goods industry is enormous. Mainland China is the world’s largest producer of counterfeits, accounting for 63.2% of seized goods in 2013, followed by Chinese-ruled Hong Kong at 21.3%. Products from the United States, Italy, France, and Switzerland have been the main targets.See the rest of the story at Business Insider
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