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This paper discusses the problem of piracy and intellectual property theft in China. The Internet has become the most common vehicle for software piracy in China. But it's not just software that is being pirated. In virtually every manufacturing sector - pharmaceuticals, fashion, tobacco, consumer electronics, car parts, even baby food - counterfeiting and copying in China are rampant. Despite an ongoing national campaign to stamp them out, they're on the rise, according to many foreign and Chinese business people forced to cope with the consequences.