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Reuters

More than 40 per cent of goods sold online in China last year were either counterfeits or of bad quality, the state-run Xinhua news agency said, illustrating the extent of a problem that has bogged down the fast-growing online sector.
The report, which was delivered to China’s top lawmakers on Monday, said just under 59 per cent of items sold online last year were genuine or of good quality, Xinhua said.
China has been trying to shake off its notoriety for pirated and counterfeit goods, long a major headache for global brands targeting the Chinese market from iPhone maker Apple Inc to luxury retailer LVMH.
READ MORE: Chinese government pledges to step up crackdown on selling fake goods online
Chinese e-commerce giant Alibaba Group Holding has been lobbying to stay off a US blacklist for fakes after coming under renewed pressure this year over suspected counterfeits sold on its shopping platforms.
The report called for “accelerated legislation in e-commerce, improved supervision and clarification of consumers’ rights and sellers’ responsibilities”.

It added these were needed due to the rapid emergence of online sales, which grew 40 per cent last year to 2.8 trillion yuan (HK$3.4 trillion).
READ MORE: Luxury brands hit Alibaba with counterfeit suit
China wants to boost protection for consumers online, where there is still a lot of uncertainty about how consumers can claim compensation or hold online vendors to account.
The report added customer complaints about online orders hit 77,800 last year, a steep jump of 356.6 per cent against 2013.


Over 40 per cent of goods sold online in China fakes or poor quality, says state media report

Members of the public examine fake bags during a counterfeit goods awareness campaign run by the police in Shanghai. Photo: AP

The Chinese e-commerce and online shopping giant Alibaba has rejected government suggestions that it is not doing enough to stop fakes being sold on its platforms. Photo: SCMP Pictures

Chinese government pledges to step up crackdown on selling fake goods online

Zhang Mao, chief of the State Administration for Industry and Commerce, says there will be greater oversight of e-commerce sites in China. Photo: EPA

Some shops selling fake or poor quality products on Alibaba’s online shopping platform Taobao.

Fines for fake goods a small price to pay for China's cheap counterfeits

Tmall is one of many sites that sell cheap fakes. Photo: Bloomberg

Taobao cries foul over study's claim that it sells fake, substandard goods

Chinese workers sort out packages meant for online shoppers at a delivery firm. Photo: AFP