On Shaping up Mechanism of the Counterfeit and Shoddy Products and Its Comprehensive Treatment in Economic Transition of China

There exists national action of crocking down the Imitation and Counterfeit every year in our country. But the Imitation and Counterfeit is still rampant. The deep reason is that price cannot reflect the product quality. Only if price depends on market and un-market factors rather than product quality, high price could induce the act of Imitation and Counterfeit. The imitation and counterfeit can reduce the market demand, because of asymmetric information, defaults of property right and regional protectionism, its effect is counteracted by promoting action of high interest to imitation and counterfeit. Improvement and rectification of the Imitation and Counterfeit should take the universal measures of preferring rules, stabilizing prediction, adjusting structure and standardizing enterprise's behavior, etc.