From Hollywood movies to designer clothes, sports equipment and medicines, China is recognized as the world's premier source of pirated goods.
According to Joe McDonald of the Associated Press, Chinese piracy takes away up to US $50 billion per year in sales from legitimate international trade.
This past July, Beijing launched a 100-day crackdown on vendors who sell pirated goods. China's anti-piracy campaign was renewed on the eve of trade talks with U.S. Treasury Secretary Henry Paulson.
The current campaign targets producers and distributors of illegally copied movies, music, software and books. Furthermore, Beijing will severely punish the smuggling of equipment used to make pirated products. This includes CD- and DVD-burners used for criminal purposes.
If Beijing fails to contain its piracy problem, Washington has advised that China may face a formal complaint in the World Trade Organization. That process could result in trade sanctions and other penalties against the People's Republic.
