To: average joe who wrote (634 ) 1/20/2001 4:34:46 AM From: GUSTAVE JAEGER Respond to of 23908 Mind if I rephrase your statement?? Here it comes......Their only crime is being successful Chinese business people. US capitalists want them prosecuted in China to face the firing squad. The US calls them pirates and counterfeit smugglers when in fact they are simply capitalists. You label "counterfeit piracy" what I'd merely call "competitive slip-streaming"....Multinationals crack down on counterfeits in China (11 October 2000) Lin Rongqin, a small commodity wholesaler who has been doing business between Yiwu city, Zhejiang province and Guangzhou for years, never thought he would be watched by the world-famous Pinkerton Co. or be the first person imprisoned for selling counterfeit products. He will spend 2½ years behind bars. This happened as a result of the "largest anti-counterfeiting campaign in the world." This year, Procter & Gamble Co. (P&G) launched the "Dragon Year Anti-Counterfeiting Campaign" in China. Pinkerton was hired to recruit people to secretly gather information about people, like Lin, who make or sell fake products. Over the past decade, P&G has conducted more than 2,000 raids. These were made weekly in more than 20 cities around China this year, totaling over 300, the Sept. 26 Zhongguo Jingying Bao (China Business) reported. Headed by P&G, 49 multinational corporations, as members of the Quality Brand Protection Council (QBPC) under the China Association of Foreign-Invested Enterprises, are determined to wage a protracted war against fake product manufacturers and dealers, the article said.Counterfeiting: A serious problem "China is not the only country with fake products, but it is no doubt one of the regions most severely afflicted with the production and marketing of counterfeit goods," a vice president of P&G said. P&G boasts a number of brands and has therefore become a chief victim of counterfeiting, the article noted. One raid in Guangzhou alone uncovered 4,000 boxes of P&G products, including Rejoice and other known brands of shampoo, bath lotion and skin-care products. These fake P&G products, all seized within a week, were worth some 5 million renminbi (US$616,061). According to the estimates of hired investigators, some 15 percent to 40 percent of P&G products on shop shelves are fake. Calculated at the rate of 15 percent, these counterfeit products cause P&G annual losses of US$150 million, or 300 million bottles of 400-ml Rejoice shampoo, the article reported. Enterprises experience the greatest harm from fake products. Quantifiable sums include the loss of profits and the expense of fighting counterfeits. In 1998, 146 enterprises that were the victims of counterfeiting activities suffered a total profit loss of Rmb 1.59 billion (US$192.1 million), and spent a total of Rmb 265 million (US$32 million) on anti-counterfeit activity. Mr. Chen, with the Legal Affairs Department of Gillette, has devoted himself to anti-counterfeiting endeavors for eight years. In 1993, the company had only two employees working against counterfeit products. Currently, in addition to having seven employees doing such work, Gillette has also hired three professional companies to assist in its anti-counterfeiting efforts. But fake Gillette products continue to emerge in an endless stream, the article noted. Between January and July, the company spent Rmb 3 million (US$362,319) on fighting counterfeiters, but the results are insignificant. So far, only purchase prices, suffering under the savage attack of fake products, have been stabilized, the article said. Statistics from the China Association of Foreign-Invested Enterprises show that according to the ratio between the estimated sales volume of fake products and the sales volume of authentic products, domestic commodity sales in 1998 totaled Rmb 6.41 trillion (US$774.7 billion). By deducting the sales revenue of Rmb 912.53 billion (US$110.2 billion) from primary products and readjusting according to a ratio of 34.76 percent of enterprises having its products counterfeited, the amount of fake products on the national market in 1998 is estimated to be worth Rmb 132.93 billion (US$16.1 billion). [snip]chinaonline.com