[Author] [Course Number] [Instructor] [Date of Submission] Chinese Piracy and Its Implications to World ‘s Major Economies The term “piracy ‘ has acquired a new meaning in the world of the so-called “new economics that is , the realm of globalization . While piracy was traditionally viewed as a system of loot and acquisition by sea-faring pirates , usually operating in coastal areas or in some cases in the high seas , piracy today nonetheless takes the form of an underground economy propelled by mass production of fake products . This is essentially true for China . It is estimated that 85 to 95 percent of all copyrighted works sold in China are fakes . The lax Chinese laws on copyright as well as the size of its market may have propelled the boom of an underground economy . To expand its gross national product per capita , the Chinese government under Deng and his successors implemented economic policies that aimed to curb unemployment in the country as well as to build a large capital inventory . In the words of Deng , “slow economic development is not socialism ‘ Many claim that the Chinese government can easily stop economic piracy since they control one of the world ‘s largest security services . The Standing Committee of the Political Bureau can generate legislations that can destroy the economic base of piracy . There is a simple reason why the Chinese government does not or pretends to fight piracy . Subsidiaries and local outposts of the Chinese Communist Party are reaping large profits from underground business tycoons most of which are members of the CCP . Nonetheless , state-owned corporations and agencies are deriving indirect taxes from this underground economy (it is estimated that 8 of China ‘s GDP is attributed to counterfeit products . Hence , overall the Chinese government benefits from this type of economic relationship . Enforcement of strict laws on copyrighted materials is a matter of public demagoguery and foreign policy .The implications of these economic policies was the encouragement of the growth of an underground economy (absent during the Mao era ) that produces the world ‘s largest number of fake and substandard products .Thus , it is estimated that 68 of all bogus and substandard products in the United States . In Japan and the European Union , the number is 42 (Gamble 1 . In May 2005 , EU customs authorities seized more than two million counterfeit items in one ten-day period (Gamble 1 . Malta was the center of the Chinese counterfeit economy in the Mediterranean since the highest number of counterfeit items was found there (13 containers on shipment to Africa – feeding the African black market . The products seized were of varying types : medicines , DVDs , iPods , cell phones , and even barbiturates . According to the World Health Organization , 10 of all legal drugs sold globally are counterfeit (Gamble 1 . Eighty percent of these counterfeit drugs are produced in China . For developing countries , the number is staggering close to 60 . Recently , the United States , through the FDA was able to seize 51 shipments of the drug Tamiflu (Gamble 1 . These shipments were…