By Aloha Memorabilia Company | November 24, 2009 at 09:53 AM EST | No Comments
Thought I'd pass on this article that was sent via email to us.
Counterfeiters Target Chinese Coins
|By Richard Giedroyc, World Coin News
November 21, 2009
Counterfeiting is one of the two oldest professions. The other has nothing to do with coin collecting! We’ve seen everything from counterfeiters in ancient times trying to ply their trade without losing a limb or their life to government sanctioned counterfeiting of other nation’s coins and currency in an effort to destroy an enemy’s economy.
Today the loudest complaint heard among coin dealers and collectors regards the counterfeit U.S. and foreign coins that appear to be coming from the People’s Republic of China. The Chinese government can be blamed for turning its head the other way rather than stopping this counterfeiting, but all that may be changing now that China itself appears to be the primary target of many of these privately owned counterfeiting operations, some of which may be becoming quite professional.
The Beijing Morning Post newspaper is now reporting that twice as many counterfeit coins and bank notes are being seized across China as were seized a year earlier. That’s right! I said coins and bank notes. Unlike in the United States, coinage is currently a target for Chinese counterfeiters!
The Beijing newspaper reported 684 million renminbi yuan (about $93.7 million US) was seized by public security organizations throughout the past year. The percentage of the seizures that are in small denomination bank notes and in coins has increased by 400 to 600 percent since 2005.
What’s more, it now appears the counterfeiters are no longer mom and pop shops, but more organized operations employing entire families and even significant numbers of people from the same town.
According to a translation of the newspaper article, “They group together relatives and fellow townsmen and form ‘industrial chains’ that are composed of relatively stable personnel with individual responsibilities. Generally, the main suspect within the family would buy large amounts of counterfeit currency from Guangdong and assign them among the group. Then, individuals either sell them or spend them around the country.”
According to the Chinese government, the counterfeit currency is originating in Guangdong Province, stored in the three provinces of Anhui, Henan, and Hunan, then circulated in provincial capitals where cash is used in large quantities and the population is mobile. From there the counterfeit money spreads into surrounding areas, Central and Western China, and finally virtually across the nation.
A national anti-counterfeiting program called “09 Action” was launched in January by the Ministry of Public Security. A spokesman for 09 Action told the newspaper much of the counterfeit money is being spread by asking peddlers and those operating local markets in suburban areas for change. Although the majority of the phony money is still in large denomination bank notes, the number of fake small denomination bank notes and coins is increasing dramatically.