Karūtūtū · Marshallese

China's SAMR Launches Tip-Off Channel to Fight Fraud in Traditional Craft Markets

Foreign founders dealing in jewelry, precious metals, rosewood, or ceramics should note China's new reporting channel for fake inspection certificates and false marketing. Learn what the SAMR campaign covers and how to report violations.

What Foreign Founders Need to Know About China's New Crackdown on Fake Inspection Certificates

Foreign entrepreneurs operating in China's traditional craft sectors—including jewelry, precious metals, rosewood products, and ceramics—should be aware of a new enforcement initiative by China's State Administration for Market Regulation (SAMR). The agency has established a reporting channel for its "Fighting Fakes and Clearing the Source" campaign, targeting fraud related to inspection and testing certificates. This article summarizes the official notice for foreign founders who may be affected.

Scope of the Reporting Campaign

The SAMR notice outlines four categories of violations that can be reported. These are relevant to any company involved in the production, sale, or certification of traditional crafts.

1. Illegal Workshops and Intermediaries

The first category covers so-called "black workshops," "black dens," and "black intermediaries" that forge inspection and testing reports or appraisal certificates for traditional crafts such as jewelry, precious metals, rosewood, and ceramics.

2. Fraudulent Practices by Producers and Sellers

The second category addresses producers and sellers who:

• Forge, alter, misappropriate, or trade in inspection reports or certificates;
• Use fake inspection reports or certificates;
• Pass off inferior goods as high quality or substitute fake materials for genuine ones; or
• Engage in false marketing.

Foreign founders should ensure their supply chains and marketing materials are free from such practices, as violations can lead to severe penalties.

3. Misconduct by Testing Institutions

The third category targets inspection and testing institutions that operate beyond their accredited scope or issue false or grossly inaccurate reports. This serves as a reminder for companies relying on third-party testing to verify that their chosen labs are properly accredited and reputable.

4. Online Platforms and False Advertising

The fourth category focuses on e-commerce and livestreaming platforms and related operators that:

• Create fake websites, links, or accounts to offer false testing institutions or certificates;
• Use keywords such as "inspection and testing," "CMA," "CNAS," "guaranteed pass," "no sample submission," "inspection-free," or "direct certification" without verifying qualifications; or
• Promote such services through online search and advertising.

Foreign founders using online marketing in China should avoid these prohibited terms unless they have verified credentials.

How to Report Violations

Foreign founders who encounter or suspect violations can use the following official channels:

• Email: [email protected]
• Phone: 010-88651775 (weekdays 9:00–11:30 and 14:00–17:00)
• Additional channels: The 12315 platform and hotline, or local market regulation departments.

Reports should be submitted using the "Traditional Craft Market 'Fighting Fakes and Clearing the Source' Reporting Information Collection Form" (available as an attachment to the original notice).

Encouragement of Real-Name Reporting

The SAMR encourages real-name reporting to facilitate investigation and follow-up. The agency states that it will strictly maintain confidentiality and protect the legitimate rights and interests of reporters.

Implications for Foreign Founders

Foreign founders setting up or operating a company in China's traditional craft sector should take note of this campaign. Compliance with inspection and certification requirements is essential. Ensure that all testing reports and certificates used in your business are authentic and obtained from accredited institutions. Avoid any marketing claims that could be construed as false or misleading. If you become aware of fraudulent activities, consider using the reporting channels provided.

For foreign founders, understanding these regulations is part of operating responsibly in China. This campaign underscores the Chinese government's focus on market integrity and consumer protection, which can affect supply chain due diligence and marketing strategies.

Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.