Counterfeiting & Infringement Trends in Chinese Ecommerce

Picture this: In this Douyin live stream, the seller discreetly peddles counterfeit luxury goods imitating XXX designs and trademarks. They use vague labels such as ‘top-tier original manufacturer copies’ and coded ordering (e.g., ‘C24’) to conceal the products’ inauthenticity and evade the platform’s monitoring. This tactic is a typical example of how counterfeiters disguise the sale of fake luxury goods in Douyin live streams and other Chinese ecommerce platforms.

While this scenario is frustratingly common, it is increasingly encountering a wave of new governance measures. As the Chinese ecommerce market continues to lead global transactions (accounting for over 45% of worldwide online retail sales in 2025), the fight against counterfeits and infringements has developed into a high-stakes contest involving technology, regulation, and platform-specific strategies. Below, we analyse the latest trends, platform actions, and ongoing challenges that are shaping this crucial field. You can also get a free brand audit to see if your brand is protected across Chinese ecommerce platforms and beyond right here.

2025 Core Trends: New Dynamics of Infringement in Chinese EcommerceEcosystems

The landscape of counterfeiting and infringement in the Chinese ecommerce sector is no longer a one-size-fits-all situation. Instead, it has evolved into platform-specific and scenario-driven challenges, each posing unique risks to consumers and brands.

1. Chinese Ecommerce & Live-Streaming: The Top Infringements

Live-streaming platforms like Douyin and Kuaishou have become the primary locations for counterfeit complaints. Data in 2025 shows a 62% year-on-year increase in reports related to live sales. A key driver behind this is the rise of ‘Superfakes’—highly sophisticated counterfeits that mimic luxury goods (e.g., designer bags, high-end 3C products) with a simulation rate of over 95%. These counterfeits use advanced manufacturing techniques to replicate materials and logos, and they now account for more than 30% of all counterfeit-related complaints on live-streaming platforms.

Meanwhile, social media platforms such as Xiaohongshu face a different threat: AI-generated deceptive content. Complaints about ‘product mismatch’, where the received item differs from the AI-synthesized review images, have risen by 78% year-on-year. Young consumers, attracted by visually appealing ‘grass-planting’ posts (a term referring to product recommendation content), often fall victim to these falsified product demonstrations.

2. ‘Ghost Stores’: The Elusive Chinese Ecommerce Enforcement Challenge

A major problem for regulators is the widespread existence of ‘ghost stores’, online shops with false addresses and contact information. According to China’s State Administration for Market Regulation (SAMR), more than 50% of stores involved in counterfeiting fall into this category, making it almost impossible for regulatory teams to track down their physical operations. These stores often appear temporarily, especially during sales events, and disappear once complaints accumulate, leaving consumers with little chance of seeking redress.

3. Globalized Cross-Border Counterfeit Chains

In 2025, cross-border counterfeiting has undergone a dangerous evolution: the ‘overseas labelling + cross-border distribution’ model. Unscrupulous sellers establish shell companies in Southeast Asia and Latin America, attach ‘foreign brand’ labels to domestically produced counterfeits, and sell them back to China through platforms like Temu and Shein. This tactic takes advantage of tariff gaps and regulatory blind spots, and such cases now make up 45% of all cross-border Chinese ecommerce complaints.

4. Sales Events: Infringement ‘Peak Seasons’

China’s flagship ecommerce events, Double 11 (November 11) and 618 (June 18), remain magnets for counterfeits. During the 2025 Double 11, Pinduoduo’s ‘Billion Subsidy’ section alone received 230,000 complaints regarding low-quality and counterfeit goods. Over 60% of these complaints involved fake home appliances and cosmetics, and some items (e.g., shoddy power banks) even posed fire hazards. This is a stark reminder of the safety risks associated with event-driven counterfeiting.

2025 Governance Updates: Platform-Specific Solutions & Tech Innovation

Major Chinese ecommerce platforms have responded to these challenges with customized strategies, leveraging technology to address gaps in counterfeit detection and infringement prevention.

1. Taobao/Tmall: Blockchain for ‘Superfake’ Traceability

To tackle high-end counterfeits, Taobao and Tmall launched a Blockchain Authenticity Traceability System in 2025. In collaboration with over 1,000 luxury and 3C brands, the system tracks products from manufacturing and storage to sales. Consumers can scan a QR code to view details such as the sources of raw materials and factory certifications, effectively eliminating ‘information asymmetry’ for premium goods. By the end of 2025, this system had blocked 120,000 links to ‘Superfakes.’

2. Douyin: AI for Real-Time Chinese Ecommerce Live-Streaming Monitoring

Douyin’s solution to live-streaming fraud is its AI Live Monitoring Tool, which analyzes both verbal claims (e.g., exaggerated product functions) and visual demonstrations (e.g., mismatched samples) in real time. When the tool detects violations, it automatically triggers alerts and pauses non-compliant streams. In 2025, this technology handled 32,000 non-compliant live streams, marking a crucial step in curbing deceptive sales tactics.

3. JD: Logistics-Driven Counterfeit Interception

In 2025, JD leveraged its proprietary logistics network to establish ‘Counterfeit Interception Warehouses.’ All incoming products undergo three rounds of inspections: appearance checks, functional tests, and component analysis. By the end of the year, these warehouses had seized 8 million problematic items, with 65% of them being cross-border goods. JD also introduced a ‘24-Hour Counterfeit Refund’ service, ensuring that consumers receive full refunds promptly if they receive counterfeit products.

4. Xiaohongshu: AI-Generated Content Verification

To address fraud involving AI-synthesized reviews, Xiaohongshu developed an Image Authenticity Check Feature. When users upload ‘grass-planting’ posts, the system scans the images for traces of AI generation and labels them with a ‘Synthesis Risk Level’. These risks include ‘Low Risk’ for minor edits and ‘High Risk’ for fully AI-created conten. By 2025, this feature had flagged 500,000 suspicious posts, helping users make more informed purchasing decisions.

5. Strengthened Regulatory-Platform Collaboration

To combat these trends, SAMR has partnered with China Customs to launch the ‘Cross-Border Ecommerce Counterfeit Traceability Initiative.’ In 2025, the number of cross-border product inspections increased by 90% year-on-year. These inspections primarily focused on cracking down on ‘overseas labelled’ counterfeits. Additionally, the Measures for the Protection of Intellectual Property Rights in Live-Streaming Ecommerce officially came into effect. This required platforms to implement end-to-end supervision of livestreamers’ product qualifications, including pre-review, real-time monitoring, and post-sales tracing. Non-compliant platforms face fines of up to 5 million RMB, which serves as a significant deterrent.

Conclusion: Securing Chinese Ecommerce Platforms

2025 marks a turning point in China’s fight against ecommerce counterfeits and infringements. This turning point is defined by innovation, coordination between regulators and platforms, and third-party brand protection partners like EBRAND. Together, we can fill governance gaps (e.g., cross-platform monitoring, global regulatory collaboration) that platforms alone cannot address. As the Chinese ecommerce market continues to evolve, brands that combine ‘platform synergy’ with ‘third-party expertise’ position themselves best. With those strategies in hand, we can protect reputations and gain consumer trust.