Trading Copy Goods from China to Africa: Profits and Morality

Yang YANG

Research blog http://yangyangprofile.blogspot.hk

2008 Global Financial Crisis

Asian Games , Entry Restriction

Serial Bankruptcies in Dongguan

African protest again in Guangzhou

2008

2009 July

2010 Nov

2011 April

2011 July

2012 May

2012 June

African protest in Guangzhou

Trade malls cracked down by Guangzhou authority

45 Chinese arrested in Kano, Nigeria

Trading Copy Goods

Moral Judgements
(BBC) - Nigerian Immigration Chief: "The Chinese expatriates were found to be scavenging in the market, which is hurting the nation's economy," deprive Nigerians of job opportunities (The Economist) - Fake goods are rife, a widespread misallocation of capital, or malinvestment (China Daily) - GZ resident: business should be closed if they sell fake products, or if it damages Guangzhou's reputation Traders What I do is good for Africa.

Fake vs. Real

a well-made product and a well-marketed brand. Buying the real: prestige, quality. Buying the fakes: consume prestigious brand without buying the high-quality goods, altering the competition among oligopolistic trademark owners. (Gene Grossman) What about price?

Morality of Informal Trade

Absolutism vs. Relativism
Genocide is wrong; killing is wrong; death sentence is wrong; hurting people is wrong.

Trading Fake Goods Into Africa

Pros Cons

Job opportunities for social grassroots African consumers can afford to experience 1st world products
Inexpensive and not second-hand Subject to various innovation before making local brands

Infringement of copyright Hurt legitimate business; unfair price competition

Poor quality; may be dangerous Tax evasion

A Contextual Morality
Specific context:
Selling to African consumers, who do not have the buying power to purchase original products. Most consumers know they are buying fakes. Brand recognition is superficial. Millions of social grassroots depend on the informal trade to make a living. Potential of transforming to local brands.

Morally condemned, or a crime act? Who defines?

Thank you
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