China has agreed to provide special trademark protection to Walt Disney Co. as the U.S. entertainment giant prepares to open its first theme park in the Chinese mainland next year, the country’s industry regulators announced on Thursday, Nov. 5.
The government will carry out a year-long campaign to crack down on counterfeit Disney products, the State Administration for Industry and Commerce (SAIC) said in a statement.
"[The campaign] will promote the development of a fair and competitive market, and protect China's international image for safeguarding intellectual property rights," the statement said, noting concerns that fake goods are damaging China's image in the world market.
China has struggled to shake off a reputation for being a haven for counterfeits, ranging from imitation handbags to automobiles, causing headaches for premium global brands such as iPhone maker Apple Inc. and luxury retailer LVMH.
SAIC said it would set up "emergency teams" to help protect Disney trademarks, increase training for law enforcement to spot illegal behavior, and tighten surveillance of fake Disney items online.
Over 40 percent of goods sold online in China in the past year were either counterfeits or of poor quality, the state-run Xinhua News Agency reported earlier this week.
Disney, which is building a $5.5 billion theme park in Shanghai with state-owned Shanghai Shendi Group, is angling to enter the world's second-largest economy despite the country's recent economic slump.
In May, the company opened its largest Disney store to date in Shanghai and has started to expand into China's fast-growing film market.
The latest firm in its Avenger's franchise, "Avengers: Age of Ultron" bagged the second spot in China's 20.4 billion yuan ($3.2 billion) box office for the first half of the year.
Disney announced earlier this year that it is pushing the opening of the Shanghai Disneyland resort from the end of 2015 to the first half of 2016.