China busts $10M counterfeit ring targeting Van Cleef, Cartier, Bulgari

What happened Shanghai police have dismantled one of China’s largest counterfeit luxury jewelry networks in recent years, exposing the growing industrialization of fake goods. Van Cleef & Arpels, Cartier, Bulgari, and Tiffany — long symbols of craftsmanship and prestige — have become templates for illicit workshops churning out low-cost replicas that increasingly blur the line for consumers. According to local media, authorities arrested 22 suspects and seized more than 50,000 counterfeit pieces worth over 70 million RMB ($10 million). Investigators found entire villas converted into full-scale production hubs, with branded boxes, packaging lines, livestream equipment, and workers handling inventory, shipping, and after-sales requests. The operation relied on alloy substituted for 18K gold, glass masquerading as gemstones, and flawed logos and anti-counterfeit markings. Though the cost to produce each piece was only a few to a few hundred RMB, items were sold via livestream rooms for several hundred to several thousand RMB, often under banners reading “authentic guaranteed” or “support in-store verification.” The Jing Take: Livestreaming’s dark supply chain Richemont, parent of Cartier and Van Cleef & Arpels, first spotted suspicious listings in June, identifying livestream accounts claiming to ship from Shanghai’s Baoshan district. Police traced fragmented shipping addresses to a single warehouse via return-parcel data, eventually uncovering a villa that served as the gang’s core node. The counterfeit ring operated with corporate-style divisions of labor: materials procurement, livestream sales, packaging, and customer service. The group’s accumulated sales exceeded 50 million RMB ($7.1 million). Richemont sent a letter of gratitude ahead of the China International Import Expo after the police’s rapid intervention curbed further IP violations. Shanghai has expanded its “Blue Whale” enterprise-protection stations to give brands direct channels to report suspicious activity, and during CIIE even opened on-site consultation points for corporate IP protection. Cosmetics counterfeiting also surges Jewelry is not the only sector under pressure. Estée Lauder’s ultra-luxury skincare label La Mer has sued seven manufacturers and individuals for trademark infringement and unfair competition, with the Hainan Free Trade Port IP Court freezing a combined 25 million RMB ($3.5 million) in assets ahead of trial. The case’s estimated value exceeds 20 million RMB ($2.8 million) — one of China’s largest cosmetic IP disputes in recent years. China’s regulators reported 17,000 trademark-infringement and counterfeit-patent cases in the first half of 2025, with beauty as a major hotspot. Recent rulings have uncovered counterfeit versions of Clarins, Lancôme, and domestic favorite Bee & Flower, with some criminal groups running more than 30 online storefronts. Penalties have risen: Estée Lauder won 10.6 million RMB ($1.5 million) in damages in 2024, while the Hema counterfeit case —a high-profile IP infringement incident involving Hema (盒马), Alibaba’s premium grocery chain, which was supplying and selling counterfeit beauty products through its retail channels — led to a five-year prison sentence for the ringleader. Luxury brands must reinforce their anti-counterfeit measurements The rapid expansion of livestream-driven counterfeiting — now encompassing both luxury jewelry and prestige skincare — reveals how counterfeit networks have evolved into highly coordinated, corporate-like operations. As consumers’ price sensitivity rises, illicit groups are exploiting demand gaps with increasingly deceptive claims of “authenticity.” While enforcement is intensifying, as seen in major raids, asset freezes, and rising criminal penalties, the breadth of cases shows how quickly counterfeit ecosystems adapt. For global brands operating in China, IP protection is no longer a reactive legal function but a frontline business priority requiring real-time monitoring, closer police collaboration, and supply-chain scrutiny. With consumer trust at stake, brands must treat anti-counterfeit enforcement as central to long-term growth. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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China busts $10M counterfeit ring targeting Van Cleef, Cartier, Bulgari