How Legal Systems Have Affected Sino–US Relations: Counterfeiting of Construction Products and Materials

Abstract

The construction industry is considered among the most critical drivers of international progress in terms of jobs, infrastructure, economy, and science. However, the American construction industry has been increasingly impacted during the past three-and-one-half decades by Chinese counterfeiting. The prevalence of Chinese counterfeit products in many supply chains within the American construction industry affects more than lost sales; it reduces project quality, causes tremendous monetary loss, and jeopardizes construction worker safety, thus harming Sino–US relations. This paper places counterfeiting into historical contexts, and examines the Chinese and US legal systems with regard to counterfeiting, with an emphasis on China. The paper finally discusses possible reasons for the proliferation in China of what Westerners regard as unethical behavior, and how counterfeiting affects Sino–US relations. At the project site, those individuals involved in procurement of construction materials, tools, and equipment should pay specific attention to the details of the appearance of the items received, as well as the packaging in which it arrives, the stamps that may be affixed to the item, and the paperwork that accompanies the item. Many lives have been lost around the world due to counterfeit construction materials, tools, and equipment. The last line of defense is made up of personnel at the construction project site. All personnel engaged in procurement of materials, tools, or equipment should be trained to look for counterfeit items. The research team has generated a long list of things that manufacturers, suppliers, contractors, and owners can do to mitigate the problem. This list is available from the author. At the national level, diplomatic efforts should not flag until the People’s Republic of China is consistently enforcing its own laws and rules regarding counterfeiting and intellectual property. As shown in this paper, China has signed treaties, enacted laws, and statutes, and shown the ability, to effectively stop counterfeiting and intellectual property piracy. They must be properly enticed to enforce their own rules.