WikiWealth

"Despite stronger Intellectual Protection Laws, China continues to be a haven for counterfeiters and pirates. The piracy rate remains one of the highest in the world and is estimated to be over 90 percent and cost the U.S. alone over one billion dollars in revenues. On average, 20 percent of all consumer products in the Chinese market are counterfeit. If a product sells, it is likely to be illegally duplicated. Although china has displayed a willingness to address this problem, enforcement measures taken to date have not been sufficient to deter massive IPR infringements effectively."

Source:

http://www.mac.doc.gov/China/Docs/BusinessGuides/IntellectualPropertyRights.htm