📑 Commercial cases · Awareness case
Selling Counterfeit Goods in China and Legal Consequences for the Seller · Yalla China
🤝 Governing law: قانون العلامات التجارية / Trademark Law of China (2019 Amendment) + Anti-Unfair Competition Law
Selling counterfeit goods in China exposes the seller to civil fines up to five times the illicit profits, and in serious cases to criminal prosecution.
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
Under the Trademark Law (revised 2019) and Anti-Unfair Competition Law: selling counterfeit goods is subject to: (1) Civil liability: compensation = 1-5 times the illicit profits or losses to the trademark holder; (2) Administrative measures: confiscation of goods, facility closure, and administrative fines; (3) Criminal liability: under Article 213 of the Criminal Law, trademark violation + profit from counterfeit goods constitutes a crime punishable by up to 7 years imprisonment. The same provisions apply to foreigners selling inside China whether ordinary traders or e-commerce traders.
🎓 The lesson / takeaway
Always verify the supply chain and trusted source of goods before selling them. Your ignorance of the goods being counterfeit is not a sufficient legal defense.
🕒 Updated: 16 March 2026