The business of product counterfeiting in China and the post-WTO membership environment

China is generally acknowledged to be the world's number one country producer of counterfeit products. After becoming a member of the World Trade Organization (WTO) China is now obligated to comply with WTO provisions on protection of intellectual property rights (IPRs). However, product counterfeiting operations in China are well entrenched. The postWTO membership environment has changed little, and such illicit operations are unlikely to subside soon. Furthermore, there is not much foreign companies can do because the response strategies recommended in the business literature have limited effect in the Chinese environment. Foreign companies may have to wait until China becomes on balance a victim instead of a benefactor of product counterfeiting before they can hope to see better protection of their IPRs.