(Yicai Global) Jan. 16 -- Many Chinese merchants have opened plants in countries such as South Korea and Japan to produce fake products, which are then sold back to Chinese consumers through online stores run by overseas students, state-run news outlet Legal Daily reported on Jan. 16.
The sellers are taking advantage of increased demand among Chinese people to buy foreign products through students studying abroad due to the belief that they are of better quality than goods on sale in China. The rapid development of the internet has also facilitated the growth of this black market.
Merchants invite overseas students to work with partners, who run the factories, by finding customers from China for their products, says Yang Jia, a Chinese student in South Korea. The seller said that students can make more money in this way compared to selling their own products.
The partner will then dispatch the products on the student's behalf to customers. However, the scheme is flawed because it is not possible to know if the goods are genuine products as they cannot see them in person, Yang added.
A comprehensive industrial chain for fake products has developed, and merchants even able to fake logistics information to make it harder to trace.