Where does the sale of counterfeit goods in China typically take place?

Generally, counterfeit goods are sold in partially enclosed or open air wholesale markets. These markets are often massive in size and can contain as many as 1,000 outlets.  These markets are regulated by the Administration of Industry and Commerce (AIC), however the AIC will often invest their own funds in establishing the wholesale market and will collect rent form each of the individual distributors. Thus a conflict of interest is created with the AIC, who is supposed to police counterfeiting, but has a direct financial interest in the wholesale markets.

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