Pirates, DVDs and Moral Decline

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“Damnation seize my soul if I give you quarters or take any from you.” — Blackbeard

A couple years ago, I dropped off a Christmas gift – a small jar of Vermont maple syrup – to a friend in the States. A day or two later I received a thank you note via email. “What a great gift,” it said. “I was so happy to see syrup! I thought it would be something from China.”

Bam.

I call this the gift-from-China conundrum. Made in China is synonymous with inferior quality and fake. Bringing back a present from China often feels like re-gifting an ugly vase, or worse, putting a bow on a pair of stinky old socks. Even my favorite go-to gifts, tea and silk, don’t enthrall back in the States.

To be honest, there is a lot of junk in China, and much of it is certainly counterfeit. Sixty percent of the world’s fakes originate in China. By some estimates, Chinese piracy of American goods costs the U.S. a half trillion dollars a year. The most egregious thing China is accused of stealing these days is intellectual property, and although some have argued China’s thievery is diminishing, a Wisconsin court recently found the Chinese company Sinovel guilty of detroying an American company by stealing its wind turbine technology. It should be no surprise to learn that the country most affected by piracy is the U.S. The country least affected is China.

Intellectual property theft can feel abstract to many Americans, but brand name fakes are something everyone understands. Brand fakes are still hot property in Shanghai, a city that loves conspicuous consumption, and the abundant fake markets are so popular guides offer day trips for browsing tourists. (Not that I’d ever take a visitor to a fake market).

I can’t speak for Beijing, but our Shanghai fake markets get props for metaphorical consistency – the biggest ones are located deep underground – massive labyrinthine malls under People’s Square and the Science and Technology Museum. High quality fakes, (seems like a paradox, I know), are all the rage. At the fake markets, you can bring your favorite shirt or winter coat and have an exact copy (or ten) made. You can schedule an eye exam and buy glasses or polarized prescription sunglasses with designer frames for $20. (Not that we’d ever do something like that).

Sham Apple logos are so pervasive there are two different storefronts sporting them within a half block of our apartment.

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Nike, Adidas, Gucci, Coach, Uggs: The logos are everywhere. The Chinese purveyors of hilarious knock-offs that riff on well-known logos – Rolexe anyone – are referred to as shanzhai, which translated means mountain fortress; in other words, it’s an invincible market. The efficiency and swiftness with which China rips off other people’s ideas is mind-blowing. Just ask Yekutiel Sherman whose selfie-stick iphone case idea was stolen before he wrapped up a crowd-funding campaign.

Last week, China made the news by officially banning the bible from Taobao, probably one of the few places a bible was actually available in China. Never fear bible lovers, I suspect you can pick up an illegal pdf copy from a chap I know. I recently learned that pirated pdf copies of nearly any Western book are available from a shady guy on WeChat who runs what he calls . . .  A Book Store. An illegal copy of a Western book will set you back the equivalent of one U.S. dollar. It’s especially laughable that the bible was removed from Taobao, Alibaba’s version of Amazon, (everyone in China shops on Taobao). The website is widely considered one of the largest online purveyors of fake goods in the world. (Not that we’d ever buy stock in Alibaba).

The transcendence of Chinese piracy is not surprising. It’s impossible to live in China without a Chinese citizen informing you at some point in your tenure that the most successful pirate in history was a 19thcentury Chinese woman. If you grew up fabricating hooks for hands and dressing like Blackbeard on Halloween, aye matie, historical revisionism is about to squash your childhood fantasies.

Chin Shih, a 19thcentury Qing dynasty woman was the most prosperous pirate in history, not Blackbeard. After taking over from her dead husband (who was also a pirate) she commanded an estimated 1,800 junks with somewhere between 70,000 and 80,000 pirates under her management. It’s been pointed out that her criminal organization was comparable in size to Exxon Mobile. One of her notorious rules was that female captives should not to be raped – chalk one up for an early #metoo moment. The penalty for breaking this rule was beheading, of course. She was a pirate after all.

At this point in our China tenure, I’ve accepted that friends and family don’t want gifts from the PRC; China’s reputation as a counterfeiter is as firmly cemented in the global consciousness as a mouthful of qīng tuán. But if you live in China, frankly, you have to accept an uneasy relationship with piracy. It’s like a daily personal morality play running in a continuous loop. Fakes are so embedded in life, and so integral to the Chinese market economy, that “fake” is not even a pejorative term here.

As expats, we affirmed our inevitable moral decline the day we learned our Chinese DVD player only plays pirated DVDs and not the perfectly legal DVDs we brought from the U.S. One of the first sentences we heard when we arrived was: “The DVD store has everything, and it’s your only option.” Indeed, this year we watched Call Me By Your Name long before it was out on streaming services in the States. I think it was still in theaters. The proprietary message scrolling across the top of our screen suggests someone in Hollywood, not just China, is making a killing.

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Of course there are other options. Don’t buy illegal DVDs, for one. (Moral equivalency: Isn’t Hollywood the greatest exporter of U.S. soft power? How else will that reach China?) We could rely solely on our paid Netflix account. Except, Oops. We’re breaking international licensing agreements every time we log in. Technically we are breaking Chinese law and more licensing agreements by using our VPN to access Netflix. The effort it takes to avoid pirated goods in China isn’t worth the hours and emotional energy extracted from our lives. Someone will need a pair of glasses in China, and the glasses market is the place to buy them. Isn’t imitation the highest form of flattery?

Research on the ethical consequences of buying pirated goods has not made me feel better about my utilitarian arguments. (Yet, I find Utilitarianism one of the best ways to cope with certain aspects of life in China). In his book, The (Honest) Truth About Dishonesty, which has sat mostly unread on my bookshelf for the past three years, Dan Ariely offers up evidence that buying counterfeit items makes a person more likely to cheat broadly, to engage in a wide spectrum of cheating behaviors. It’s been dubbed the ‘What the Hell Effect;’ otherwise known as the ‘moral cost’ of buying fake goods, or the moral cost of making any bad decision, really.

It’s tempting to point out (so I will) that Airely’s theory can tentatively explain the intractable phenomenon of pirating and cheating in China. Many people have argued that the Chinese don’t view cheating (particularly academic cheating) as cheating, thanks to a collective (sharing) mindset. But as someone with a long term residence permit in my passport, I’m calling BS on that idea. At any rate, Airely is correct. Once you’ve purchased your first illegal DVD, it’s not long before you’ve alighted upon a venal slippery slope that starts with a massive DVD collection and ends with a suitcase full of fake North Face jackets and backpacks. Not that I would buy a (really good) fake North Face jacket.

It’s not an understatement to say we’re going to hell in a handbasket here.

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In fairness, the North Face stuff is from Vietnam, not China, but that offers even more incontrovertible evidence of the ‘What the Hell Effect’ and our moral decline.

Alas, piracy in China is propped up by a government that bans or unreasonably taxes the importation of Western goods, while allowing stores to sell pirated versions with impunity. Forbes writer Kenneth Repoza links Chinese piracy to a lack of innovation. His idea is that innovation tends to be individualistic, and without privacy laws China won’t be able to protect its individual innovators, so there’s no incentive to innovate. It’s a fine theory, but it ignores the willingness of the Chinese government to take on the role of ‘innovator for the people’.

Pirates have always been known for thievery and plunder. If Donald Trump has gotten one thing right – and it is excruciating to write those words – it’s that the U.S. has been too soft on Chinese piracy. There are certainly better, tactful, and more strategic ways to address the problem than an all out trade war. But until then, we who live in China are left with our guilty sighs of ‘what the hell.’

6 Comments Add yours

  1. Kim Moreland says:

    I LOVED the tea you brought me!!! (And it’s all gone—hint hint )

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    1. You are such a nice person! More tea on the way.

      Like

  2. David Anderson says:

    Is there even such a thing as “real” NorthFace? I was surprised that it, in fact, isn’t made in VietNam. My real one is tagged “Made in Indonesia,” and I got it halfprice at TJMaxx (hmmmmm. TJ & Marshall’s wouldn’t be dealing in bogus goods for profit, would they??). Globalism is such that it is all but impossible to know (whom can we go to to verify that the Indonesian jacket is more redolent of Minnesota than the Vietnamese?). In the end, the greed of U.S. brand owners is so all encompassing (buy low sell HIGH) that it’s all theory. Great essay!

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    1. It’s kind of interesting with North Face. When you look at their company profile and websites, they spend a lot of energy (and produce a lot of photos) of distribution facilities, retail outlets and headquarters… and they promote their social responsibility and green buildings. I’d be more interested in seeing photos of their manufacturing facilities in Indonesia and also likely Vietnam and learning what the working conditions in those countries are for people. Vietnam is becoming the new China in terms of producing fakes. I suppose China will someday go the way of Japan (but only if it opens up). Fifty years ago, MADE IN JAPAN meant inferior quality… it’s moved to China…. and now Vietnam. Thanks for the thumbs up.

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  3. Jim Corsale says:

    I watched a travel show about Japan and the host had some Kobe beef at a fast food booth .
    I wondered if it was the real thing (possibly Japanese counterfeit products too?).

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    1. Possibly. I think Japan has pretty strict laws regarding fakes. For example, they actually arrest people for illegal file sharing!

      Like

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