German, EU companies lose billions to Chinese counterfeits

DW (English)

An influx of cheap counterfeit goods is damaging costing German and European buinesses billions. Chinese companies in particular are copying quality products and selling them to online retailers. Customs authorities seem powerless to stop it.

Transcript

00:00Shop like a billionaire.

00:05That's what Chinese online platform Taimu promises.

00:09Platforms like Taimu, Alibaba and Shiyin are making inroads into the European market.

00:15Their rock-bottom prices are drawing customers in.

00:18Whether the quality or safety checks out, many choose to look the other way.

00:24We feel good when we order something that's cheap.

00:28It triggers what we call a reward.

00:30It gives us a sense of joy.

00:32And that makes us want to keep doing it.

00:37The flood of cheap products from Asia is putting pressure on German manufacturers.

00:42One of them is Zwilling, a Zollingen-based company known for its high-quality knives.

00:47What concerns them most?

00:48The flood of knock-offs from China and Hong Kong, sold via Chinese online platforms.

00:56We have major problems with counterfeits worldwide.

00:59Zwilling is a well-known brand and protected in over 100 countries.

01:04We can take effective legal action against fakes using the Zwilling trademark.

01:08But the number of counterfeits has risen dramatically in recent years.

01:13Cheap knock-offs of trusted brands often available for just a few euros.

01:18You can always spot a fake by all the plastic and poor quality.

01:22Here we've got really cheap knock-off forks, even with the Zwilling logo.

01:26And you can actually bend them by hand.

01:30Knock-offs and originals are on display at a museum in Zollingen.

01:35To mock product piracy, German industry awards the Plagiarius, a tongue-in-cheek twist on

01:41plagiarism.

01:44Custom seizures and product testing show that more than 85% of products shipped to Europe

01:48from third countries via these cheap platforms are not EU-compliant.

01:54That means they don't meet regulations for product safety, environmental protection or

01:58consumer rights.

01:59But what it really means is they shouldn't even be on our markets at all.

02:05And yet, the European Union has so far stood by, seemingly powerless.

02:10Chinese sellers can ship goods to Europe duty-free, as long as they're under 150 euros.

02:16Last year, 4.6 billion parcels arrived this way.

02:21That's twice as many as in 2023.

02:26Our demand to policy makers is clear.

02:28Scrap the 150-euro duty-free limit as soon as possible.

02:32That would be an important first step.

02:34Second, customs authorities need far better staffing and technical equipment, so they

02:39can inspect more incoming packages from third countries and penalise violations.

02:46Customs are often overwhelmed by the sheer volume.

02:49At Düsseldorf airport, officers rely on spot checks.

02:53There simply aren't enough staff for more.

02:56The shipment behind me has everything.

02:59Clothing, fake T-shirts, counterfeit bags, fake backpacks, shoes and cell phone cases.

03:05We even found fake Legos.

03:09Most of the packages are transported on passenger planes.

03:13How many of them contain counterfeits or can even meet EU safety standards?

03:18Authorities can hardly keep up.

03:20Unlike their Asian competitors, German online retailers have to follow EU laws.

03:25That means no knock-offs and nothing potentially hazardous to health.

03:32What's unfair is that German retailers have to comply with every law, from packaging regulations

03:38to electronics recycling and many smaller requirements, which cost money to implement.

03:43Sellers from Asia simply don't follow those rules.

03:49The EU has announced plans to crack down harder on Chinese platforms in the coming months

03:54and to hold them accountable for the products, both real and fake, that they bring into Europe.

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