Shocking Scale of Chinese Luxury Fakes —You won't believe what you’ll see

It's all covered in today's China Truths. When it comes to counterfeits, people often think of products made in China. According to a report by Voice of America titled, The United States Announces the Notorious Markets for Counterfeiting and Piracy, and China is once again on top of the list, the Office of the United States Trade Representative released its 2024 Review of Notorious Markets for Counterfeiting and Piracy. In this list, 39 online markets and 33 physical markets across 18 countries that engage in large-scale counterfeiting or facilitate piracy are named. Once again, China tops the list as the world's number one source of counterfeit goods. Let's first look at the real experience of a Chinese blogger named Xiaoya. In China, not only are Louis Vuitton bags widely imitated, but there are also three different types of replicas, each varying in quality, grade, and price. She bought one authentic bag and three fake ones to compare them individually. The results are eye-opening. The RMB 500 version gives off a strong glue smell immediately upon opening. Compared to the original, the color difference is obvious. The replica looks dull and gray, and the material is very stiff, lacking the original's soft feel. The lining is also significantly different. The genuine one is made of leather with visible texture, while the fake one uses ordinary flannel with a completely different texture. The workmanship is rough, with glue overflowing in some areas. The shoulder strap looks especially fake, with noticeable differences in thickness and detail. The so-called one-to-one replica claim doesn't hold up at all. The RMB 1,300 version still smells like glue, though less intensely. The material is still stiff, but better than the cheaper one. The color is slightly off, but not easily noticeable unless you look closely. The workmanship is decent, with no major flaws. However, the shoulder strap still looks somewhat cheap and lacks refinement. The RMB 1,780 version is the most expensive. It's impressive when worn. Soft, delicate, and very close to the original. It smells like real leather. Unlike the other two, the color almost matches the original. If you're being picky, it might be slightly lighter, but without a side-by-side comparison, it's hard to tell. The stitching is fine, the lining well-chosen, and even the shoulder strap closely resembles the genuine version. Among the three, it's the most accurate replica. What's most surprising is that this version even includes a chip. Scanning it displays the same information as the real product, unlike the other two, which have none. Though still counterfeit, it is nearly indistinguishable from the genuine item. The most famous counterfeit paradise in China is a place called Huakyangbei Market in Shenzhen, Guangdong Province. There are the largest and most concentrated watch stalls here, selling all kinds of brand-name counterfeit watches. There are also various Shanzhai brand-name bags, jewelry, perfume, etc., as well as a large number of electronic products. In the following video, blogger Xiaobao brings his girlfriend Tongtong to Huakyangbei Market. He said he wanted to open his girlfriend's eyes. Walking into the market, Tongtong was immediately attracted by a glittering lawyer gold watch. She lamented that this high-end style is not only expensive at regular counters, but also not necessarily available even if you queue up. You have to have a very good relationship with the counter and they will sell it to you. Xiaobao curiously asked about the price, and the boss only offered 380 RMB. Tongtong also noticed another, Audemars Piguet Starry Sky, which has a market price of hundreds of thousands of RMB. But it is easy to buy a replica here, and the appearance is almost the same as the real thing. In addition to electronic products, there are also a large number of counterfeit brand-name bags in the market. Tongtong noticed that many of them were popular new LV models, including Speedy Bags, Bucket Bags, Mini Styles, and the Chene Series. When she asked about the price, a counterfeit LV bag was only 380 RMB. Xiaobao touched it and said, The workmanship is very good. To me, it's no different from the real thing. They also came across fake versions of various brand-name perfumes. Tongtong smelled a Gucci perfume and said, It's about 80% to 90% similar. I can't tell the difference. And the price? The seller quoted 160 RMB, which is a surprisingly people-friendly price. When they entered the jewelry section, Tongtong saw a necklace that looked exactly like the one she was wearing and exclaimed, Isn't this the one I have on? Her genuine necklace, made of K-gold, cost her 17,000 RMB, but the nearly identical one at the stall was only 138 RMB. Under the light, they compared the two. The fake one was slightly smaller and had a single-sided carving, while the genuine one had a double-sided design. There is also a world-famous counterfeit hub in China, Yiwu. The variety and speed of counterfeiting there are jaw-dropping. Yiwu is a county-level city in Zhejiang province. It hosts the world's largest small commodity wholesale market and is known as the capital of small commodities. At the same time, it's a hotspot for counterfeit and pirated goods, a veritable capital of fakes. Once a product becomes a bestseller, Yiwu's factories quickly jump on the trend and begin mass-producing counterfeit versions. These include beauty products, clothing, bags, shoes, toys, sports gear, daily necessities, and more. How fast is the imitation process? Within five minutes of a product going viral, an identical version may already appear in the supply chain. If not, a factory will open a mold within a day, and a sample can be ready in about two days. Besides Shenzhen and Yiwu, there are seven other major centers of counterfeiting across China, capital of fake shoes, Putian, Fujian province. Known nationwide as the fake shoe capital, Putian has been a distribution center for counterfeit branded shoes since 2008. Factories there produce knockoffs of brands like Nike and Adidas, which are sold in China and worldwide via e-commerce. The counterfeiting industry in Putian has formed a complete supply chain, including materials, manuals, packaging, and even quality inspection cards that closely mimic the real ones. Capital of fake leather bags? Bayun District, Guangzhou. Cities in Zhejiang, Jiangsu, and Guangdong are home to many underground factories that specialize in high-end replicas of luxury bags. For instance, Guangzhou is a hub for fake LV bags, with Bayun Leather City being the most well-known market. Capital of fake cosmetics? Suzhou, Jiangsu province. Many cosmetics distributors in China are aware that Suzhou is the country's main hub for counterfeit cosmetics. These knockoffs are typically low-end, with prices as low as one-tenth of genuine products. However, they use cheap ingredients that may harm users' health. These unscrupulous producers disregard consumer safety entirely. Capital of fake clothing? Qingdao, Shandong province. Capital of fake bicycles? Tianjin city. Capital of fake electronics? Dongguan, Guangdong province. Capital of fake silk? Tongxiang, Zhejiang province. In short, counterfeits are everywhere in China. Ordinary people live in a society filled with fakes. Those who produce them harm others, and eventually are harmed by the system they created. In addition, Chinese people not only make fakes in China to hurt themselves, but also export these fakes overseas. As a result, when they encounter difficulties, they blame it on the trade war initiated by President Trump. Mexico has previously issued a warning to these small vendors in China who make fakes and OEMs overseas. The local Yiwu small commodity market was even forcibly closed, and the army was dispatched. The blogger pointed out that the reason why the Mexican authorities did this was not simply due to external pressure, but because some Chinese businessmen repeated the unscrupulous business operation model that had long been criticized in China. These businessmen used to operate in China by competing at low prices and producing chaotic quality, and now they are still doing the same abroad. After repeated warnings failed, the local government finally chose to impose a ban, which is not only a maintenance of market order, but also a protection for local legal operators. This incident reflects a deep-seated sadness. When some companies are overly involuted in China and cannot find a way out through legitimate means, they try to export this distorted competition logic abroad and continue to make profits against their conscience. However, the world is not a market that anyone can exploit at will, especially in South America and Latin America, where market norms and the rule of law are increasingly emphasized. The local government will not allow such destructive behavior to spread, nor will it compromise with it. However, it is regrettable that some domestic media and self-media have tried to blame the incident on the trade war launched by the United States, externalizing the essential problem. This statement is wrong. Mexico's move is based on its own legitimate maintenance of market order and has no direct connection with the United States. Instead of shifting blame, we should reflect inward. The real focus should be on the companies that produce counterfeits and harm consumers, and on the industry structures distorted by capital. We should expose and push for reform in food companies that falsify ingredient lists. We should also learn from business models like Pangdonglai, which are honest and people-centered. It is better to be down-to-earth and start to reform and improve ourselves. This is the most responsible attitude towards the market. Taiwanese businessmen fled, stores shut down, and 5 million people left. Xiamen became a ghost town. The whole country has more than 1 billion people, and Xiamen must have over 5 million. But what about now? There are hardly any people on the streets, in malls or in stores. I don't know where everyone has gone. Can any friends in Xiamen tell me what's going on? No one here. No one there. No one anywhere. After the passenger-carrying incident, Guolongyu really seems to have gone cold. I arrived at Ximeiwanda at 10.30 in the morning, thinking I could chat with a few business owners. But as soon as I entered, I didn't expect the entire mall to be empty. The shopping assistants were just standing around, bored, swatting flies. At 2 p.m., I went to the Tongan Aegean Sea Mall. It's a fairly new place, but the foot traffic was pitifully low. I really couldn't continue shopping, so I headed to Tongan City to take a look. Still, nothing. It felt like a wasted trip. China's economy continues to deteriorate, and every industry is in a slump. Countless factories, businesses, and physical stores have shut down. The same is true across the coastal cities that were once economically thriving. Due to the withdrawal of Taiwanese investors, Xiamen in Fujian province has fallen into economic decline and population loss. It's reported that about 5 million people have left. Once-bustling commercial and residential areas have become lifeless. Life is hard, and many people have simply chosen to give up. Today, let's talk about the decline of Xiamen. No one. No one. Still no one. How did Zhengguoan end up like this? Rental and sublease ads are everywhere. Stores are closing one after another. We walked around and found that nearly one-third of the shops were shuttered. Zhengguoan used to be vibrant, full of homestays and popular street snacks. People from all over the country would come here to hang out. At its peak in 2019, it had nearly 120,000 visitors a day. But now, there's basically no one on the streets. Huliwanda used to be one of the most popular malls in Xiamen. Today is Thursday, and it's 6.45pm, dinnertime rush. Back in 2017 and 2018, the Golden Street area at Huliwanda was packed like a temple fair. But now, as you can see, there's no one around. This used to be a Vietnamese restaurant. That one is Xu Daxia, completely empty. My friend used to own this one here. It was called something like Drinks. I forget the name. But business was great back then. In 2017, 2018 and 2019, there were even lines outside. Now, on a Thursday night, there's barely anyone in Golden Street. It's nothing like before. It's not just a problem with individual stores or the mall's management. Xiamen's population has drastically shrunk, and there simply aren't enough people. Someone mentioned that Huliwanda was one of Xiamen's earliest malls, with heavy foot traffic in 2017 to 2019. I opened a store in Huliwanda back then, and business was booming. Customers came in nonstop. On weekends, we couldn't even keep up. At the time, it was nearly impossible to find a vacant shop in Wanda. No one would give up their space, no matter how high the transfer fee. Now, this whole row is closed. This one is Cosbelli. Brothers, this place used to be packed every single day. Not just weekends. Every day. You couldn't even queue. Now it's all shut down. This fat grandma used to be Joe Mappo. Now closed too. This used to be Tan Yaxue Hot Pot, a massive store, but it's also shut down. Once a big place like this closes, it's very hard to rent out again. I don't get it. This is Sunday night. Is this really the current state of Zengquan? Just a few years ago, it was crowded, full of energy, spanning several busy streets. Now you can walk the entire area in just one street. What's going on? I can't understand it. It used to be so lively. We always wanted to come back here. What happened? It doesn't even look familiar anymore. So many places are closed. What's going on? Why are there so few people? I really don't understand. Of course, there are still a lot of local delicacies, some specialties you can buy. I saw on the internet that many stores in Kaitang Square had closed down. Today, we went to check it out in person. From this view, it's obvious that the store closure rate may have reached over 90%. I can't believe this used to be such a busy shopping mall in my memory. In just one or two years, it's become like this. Almost no foot traffic. Kaitang is quite central in Xiamen. There used to be more than 60,000 migrant workers living in Kaitang Village. But after the collective demolition of Kaitang in March 2021, the crowds disappeared. Although the village has been demolished, children from nearby schools still come here to play after class. I think that's the only sign of life left in Kaitang Square. This is Haokalai. A lot of people must have visited this store back in the day. The only relatively large restaurant, Laoxiangqin, is still open. RT Mart is still operating as usual, but the foot traffic is definitely not what it used to be. Do you know how the current unemployment wave differs from the layoff wave in our parents' generation? Most unemployed people today are burdened with high debts. Mortgages, car loans, and a lot of credit card debt. They're confused about the future and unable to find work. This kind of invisible pressure is mentally torturing. But during our parents' layoff era, most families had no debts. As long as you were willing to set aside your pride and work, you could support your family. Now, if you're unemployed, even putting pride aside doesn't help. You can't even cover a fraction of your debt. So unemployment today is truly frightening. Don't you think so? You might not believe what's happening in Xiamen. Since the Chinese New Year, many people still haven't found a job. Some companies have even laid off more than half of their employees. In today's climate, if you delayed getting married, you've won. If you didn't buy a house three years ago, you've won. If you didn't start a business, you've also won. Basically, the people who have been lying flat these past few years have ended up winning. Those who tried to strive have lost and ended up deeply in debt. The beauty salon downstairs in our community has changed owners three times in a single year. There are for sale and for lease signs everywhere. Even people in our industry with over 10 years of experience have changed careers. I don't understand. Why is the economy this bad? Why can't any business succeed now? Do you know the reason? How did it come to this? Oh my God. Today is Sunday and still no one is here. Many restaurants on the food floor have closed and that entire row is now full of stalls. When a restaurant shuts down, the equipment is often sold at just 10% of its value. If you can even find a buyer. Tables and chairs too. And you can't take the interior decor with you. Look here. Because this place closed early, the equipment couldn't be moved and the mall won't let you take it out. In cases like this, the boss loses all the investment. If too much food was stored, it just spoils when the shop closes. Hi everyone. Welcome to Xiamen. We are now at the Sandship Outlets Commercial Plaza across from Wutong Wharf. It's deserted here with barely any customers. Only two buses come here. Number 6 and number 82. I don't know why such a large commercial plaza was built in a place like this. Let's walk around and see what's on sale and whether it's lively. Let's go. Not bad. Many stores are offering discounts. 10%, 20%, even up to 40% off. The entire mall is beautifully decorated, but barely anyone is here. The blogger mentioned it's now easy to rent a place in Xiamen. In the past, housing near the airport was in short supply and impossible to rent. Now landlords are even reducing rents, which was unheard of before. I really have a feeling. Xiamen's population seems smaller this year. I already felt it last year in 2024, but this year it's just too obvious. I live in a village in the city on the island, and I don't feel like there are any people around. It's now the end of March, and April is almost here. Logically, those who have jobs lined up should have arrived by now. I don't know what the rental situation is like in your city, but here, it's like this. The unit next to me and the one across from me are both one-bedroom apartments. One has been empty since last summer vacation, vacant since September, and it's still empty now. Please share your thoughts in the comments section below. We will keep reporting on the COVID surge in China, so don't forget to subscribe to our channel and turn on the notification bell to get the latest videos. And thank you for tuning in.