In the past few years, as long as they could muddle through in the competitive market, some people would mix bricks and sand into cotton bales for sale; make "soft drinks" with saccharin, coloring and flavoring and sell them along the street; mix methanol into "famous" white wine and sell them to those who were organizing new marriage banquets and entertaining guests; mix 50% starch with 50% talcum powder and press it into various kinds of goods; and make all kinds of counterfeit and shoddy goods by mixing 50% starch with 50% talcum powder. They will sell "famous" white wine made with methanol to those who are organizing new marriage banquets and entertaining guests from all walks of life; they will mix 50% starch with 50% talcum powder and press it into all kinds of "antimicrobial" tablets to deceive pharmacists, doctors and patients; they will also paste other people's trademarks on their own shoddy products and pretend to be famous and high-quality products. The company will also paste other people's trademarks on its own crude products in a dignified manner, pretending to be famous products, etc. In a highly planned economy, the government directly intervenes in the economy through directive plans, and the government is the direct and concrete organizer of national economic development, as well as the main body of property rights and interests, while the enterprises are subsidiaries of the government agencies. What to produce? How much to produce? What quality standards should production be organized according to? How to sell the products? etc. were arranged by the state's directive plan, the circulation of products was unified by the state, and the market system was basically closed. Enterprises and laborers have not given full play to their enthusiasm, especially in the shortages of economic years, the level of productivity is relatively low, the outstanding problems of the products at that time is the small number of varieties, poor quality, low grade.
The market economy is a competitive, efficient and differentiated economy. Under the conditions of market economy, enterprises are the main body of property rights and interests, and the pursuit of profit maximization is the goal of enterprises, and also the key to the vitality and vigor of enterprises. The market economy is like an invisible whip, always lashing the producers of commodities to keep pursuing individual labor time lower than the socially necessary labor time, and to keep pursuing the maximum output with the minimum input. The market system is open, and the market economy has indeed mobilized the lever of personal interest, stimulating people's strong desire to get rich. This has led to two possible tendencies: the vast majority of enterprises and workers study the needs of the market, continuously develop marketable products, strengthen management, compete fairly, legitimately and legally, and realize their own interests in this way. On the contrary, a very small number of people see profit and forget about righteousness, disregard laws and morals, and get rich by using poor equipment, cheap labor, and low-quality and cheap raw materials. The market economy's principle of emphasizing profit is also a hidden value orientation that induces people to see profit and forget righteousness, leading to money worship and extreme individualism. "The cost and expenses of a bottle of fake Moutai wine are only some 20 yuan, while the selling price can be several hundred yuan, making the profits staggeringly high. A handmade fake "Hongtashan" cigarettes, the cost of which is only 10 yuan, can be sold on the market for nearly 100 yuan as the real thing. In some commodities markets in Zhejiang, a bottle of fake green orchid cosmetics sells for only a few dollars, and is sold in places such as Anhui for up to tens of dollars. A batch of fake pesticides seized on the outskirts of Zhengzhou City cost 2,000 yuan per ton and sold for as much as 5-12 million yuan per ton. The more counterfeiters and sellers do, the greater the profit, the more they do, the more they do, the blacker their hearts become. As Marx quoted a passage from Tohonen in Capital: "Once there is a proper profit, capital gets bold. If there is a 10% profit, he makes sure to use it everywhere; if there is a 20% profit, he becomes active; if there is a 50% profit, he dares to take risks; if there is a 100% profit, he dares to trample on all the laws of the earth; if there is a 300% profit, he dares to commit any crime, and even risks being hanged by the neck." (The Complete Works of Marx and Engels, Vol. 23, p. 829)
It can be seen that, before the establishment of a good economic order, the profit-tending nature of the market economy often leads to the temptation and drive of some people to resort to such fraudulent behavior as making and selling counterfeits under the temptation and drive of profiteering. It should be said that no society can completely eliminate fraud, only in an effective system and civilized society, fraud will not be easy to get. At present, China is still in the traditional planned economy system to the socialist market economy system transformation period, the market development is immature many weak links, so that counterfeit and shoddy goods to breed and spread. Over the years, a considerable number of state-owned commercial enterprises have not paid enough attention to their own commercial reputation, and a few state-owned commercial enterprises, in order to pursue short-term benefits, have rented out counters and stalls to individuals on a contractual basis, with the lessees or contractors often purchasing goods from wherever the goods are cheaper, which has led to an important reason for the proliferation of counterfeit and substandard goods into the halls of state-owned stores. Wang Hai, according to the Law on the Protection of Consumer Rights and Interests, double compensation for purchases of counterfeit goods is frequently won in some large shopping malls in the capital, which shows that state-owned shopping malls have obvious omissions in the strict control of goods, storage, sales, etc., and that some of them intentionally defraud consumers in order to obtain undue profits.
From the viewpoint of the social environment, for a period of time, in the economic activities tend to focus only on the pursuit of material interests, ignoring the spirit of morality and culture, "money fetishism" has led to a decline in moral standards. Especially in China, where the commodity economy is underdeveloped, small commodity producers are large in number and low in cultural quality, and lack understanding of the order of the market economy and the moral norms and laws and regulations that maintain the normal functioning of the market; the small-scale mode of production leads to the occlusion of information, which restricts their horizons; and the short-sightedness of these producers makes them eager to engage in short-term behaviors, to "grab a handful of things" and to engage in "money worship". Short-sightedness makes them keen on short-term behavior, "grabbing a handful of things" and engaging in "one-shot deals"; instead of doing business in accordance with the law and getting rich legitimately, they rely on exploiting loopholes and making illegal profits. Counterfeiters can be found in underground dens, in urban and rural areas where supervision is weak, and in places where commodities are traded and distributed. The sale of counterfeit and shoddy goods by fraudulent means constitutes the most suitable means of competition and a "shortcut" for them to accumulate capital at this stage. It is also believed that when the quality of citizens in a society is not very high, and some of them do not have enough capacity (financial, human and technical) to develop new products, the manufacture of counterfeit and shoddy goods often becomes an important means of survival for representatives of backward productive forces. Of the 85 counterfeiters detained for trial in a county in Anhui Province, 91% were self-employed or unemployed. In Zhejiang Province, of the 149 offenders investigated by the procuratorial organs from January to October 1993, 122, or 81.9 percent, were self-employed or unemployed. China is a country with a variety of economic components, and the number of small commodity producers is larger than that of any other country, and a small number of them have become a "vital force" in the counterfeiting and selling team. It is clear that if China is to make significant progress in curbing counterfeiting and shoddy goods, a serious issue is to educate and monitor the vast number of small commodity producers. Fair competition is a fundamental principle of a modern market economy. This principle indicates that all kinds of economic agents have equal opportunities to participate in market activities, exchange on an equal footing and compete on an equal footing. Without equal and fair competition, there can be no normal market order. At present, the abnormal phenomenon of real goods not being able to compete with fake ones, of good goods not being able to compete with inferior ones, of superiority not being able to win, of inferiority not being eliminated, and of a large number of famous and excellent products being squeezed out of the market is due to the source cover of unfair competition. Among them, especially in the purchase and sale of goods, the phenomenon of "kickbacks" is the "killer app" used by counterfeiters in unfair competition. Counterfeiters in the sale of money to open the way to a wide variety of names and means, such as cash rebates, high-grade gifts, Traveling and tourism, house decoration, prize touching, and so on. "Kickbacks" are especially important in the transaction of medicines, and it has been reported that the country loses 800 million yuan a year when only 1% of the total amount of medicines is counted as kickbacks. The proliferation of "kickbacks" has deprived some sellers of the opportunity to participate in fair competition. The secret "kickbacks" flowed into the pockets of individuals and bred corruption. Twenty-four individuals in Bobai County, Guangxi Province, sold tens of millions of dollars of medicines in Kunming over a five-year period, and gave "kickbacks" to the directors of pharmacies and purchasing agents of 19 medical units, with the least amount being 2,000 yuan, the most being tens of thousands of yuan, or 100,000 yuan in individual cases. A hospital pharmacy director from seven units to receive "kickbacks" of 53,933 yuan, found to be sentenced to 10 years in prison; another hospital pharmacy director after the crime, from his home found 3,000 grams of gold, sofa cushions are full of banknotes. High "kickbacks" are an important reason for inducing purchasers to purchase counterfeit and shoddy goods.
The promulgation of the Anti-Unfair Competition Law is a powerful weapon against unfair competition in business activities, and the implementation of the law requires a process. At present, secret off-the-books kickbacks are still prevalent in the sale of commodities, and there is a lack of fair competition in the market environment, and "kickbacks" are the catalyst and lubricant for the sale of counterfeit and substandard commodities in the world.
In summary, in the process of transition from the traditional planned economy to the socialist market economy, the monitoring and control mechanisms already established under the planned economy will inevitably become dysfunctional and weakened, and the formation and functioning of the new monitoring and control mechanisms adapted to the needs of the market economy will take a longer time and process. The degree of weakening of the social supervision and control mechanisms determines the extent to which counterfeit and substandard commodities can flourish and spread. The coexistence of the two systems and the stalemate between them have led to many contradictions, frictions and loopholes in economic life. Therefore, the persistence of counterfeit and shoddy commodities is a companion of the early development process of market economy and a unique social phenomenon under the state of professional ethics failure, which has occurred in many developed countries and regions in the world to varying degrees during the transition period of modernization.