A damning new report from the Information Technology and Innovation Foundation (ITIF) exposes deep structural failures in the fight against counterfeit goods on major Chinese e-commerce platforms. Released to coincide with the U.S. Trade Representative’s 2025 Notorious Markets List review, the investigation urges the U.S. government to act decisively as it details systemic problems with Temu, AliExpress, and SHEIN—and quantifies the massive threat counterfeiting poses to American businesses, brands, and consumers.
Widespread Counterfeiting Found: An “Urgent Need for Policy Action”
The ITIF investigation was grounded in direct test purchasing: the foundation bought 51 products from suspicious listings across Temu, AliExpress, and SHEIN. After examination, they determined 24 purchases were likely counterfeits, spanning categories from cosmetics, toys, luxury goods, pharmaceuticals, to household items.
According to Eli Clemens, ITIF Policy Analyst and author of the report, “The proliferation of counterfeits on Temu, AliExpress, and SHEIN is more than a series of isolated…
mistakes. It reflects a fundamental failure by these platforms to prioritize anti-counterfeiting efforts, leading to poor outcomes for brands and consumers alike,” said ITIF Policy Analyst Eli Clemens, who authored the report.
“Counterfeit products are not only bad for the economy, but they also pose potential safety risks to consumers. Without coordinated U.S.
enforcement, counterfeiters will continue to profit while American consumers and businesses pay the price.” China’s Outsized Role in Global Counterfeiting The ITIF report points to China and Hong Kong as the primary sources of counterfeit goods globally.
Together, these markets accounted for over 90% of the total value of counterfeits seized by U.S. Customs and Border Protection (CBP) in 2024. The FBI estimates that this IP theft costs the U.S. up to $600 billion annually…
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