Shanghai Police Burst Major Counterfeit Labubu Toy Syndicate
Shanghai police have dismantled a criminal syndicate in a significant crackdown on counterfeit goods, involved in the production and distribution of fake Labubu designer toys, seizing over 5,000 counterfeit units valued at more than 12 million yuan (approximately $1.7 million).
The raid, which took place earlier in July, marks one of the largest operations against intellectual property infringement in China’s fast-growing collectible toy market.
The operation began in March 2025 when officers in Shanghai’s Xuhui District were tipped off by a toy company after a customer unknowingly purchased a counterfeit Labubu figure.
Investigations led authorities to a suspect identified by the surname Wang, who was operating a seemingly legitimate electronics company. However, further surveillance revealed that the business was a front for the illegal manufacturing and sale of knockoff toys.
According to police, Wang had been coordinating a large-scale counterfeiting operation since November 2024. The gang imported individual components, reverse-engineered original toys, and assembled them at local warehouses.
The counterfeit toys were then packaged with forged trademarks and fake anti-counterfeit labels to closely mimic authentic Pop Mart products.
On July 4, authorities raided multiple locations, including the company’s offices and warehouse facilities. The raids uncovered over 5,000 fake Labubu and Crybaby toys, along with packaging materials and machinery used in their assembly. Eight individuals, including Wang, were arrested.
Wang has since been placed in criminal detention, while the remaining suspects face legal restrictions as investigations continue.
Labubu toys, created by popular designer Kasing Lung in partnership with Pop Mart, have become a cultural sensation across China and beyond, with demand often exceeding supply. The resulting scarcity has fueled a booming secondary market—and a flood of counterfeits. The fake versions, often dubbed “Lafufu” by collectors, are characterized by their lower quality and distorted features but have ironically gained a following for their odd charm.
Chinese customs officials have also intensified border inspections in response to the rise of such counterfeits. In recent months, tens of thousands of fake Labubu items have been seized nationwide, including plush toys, keychains, and blind boxes.
Shanghai authorities have warned consumers to remain vigilant and purchase only from official outlets or authorized dealers. They urged buyers to verify product authenticity through QR codes, holographic seals, or anti-fake verification systems provided by manufacturers.
This case has once again highlighted the challenges China faces in curbing intellectual property theft and protecting its growing creative economy. Police say further investigations are underway to track upstream manufacturers and additional retail networks linked to the syndicate.
As the global market for collectible designer toys continues to expand, Chinese authorities are stepping up enforcement efforts to preserve the integrity of local brands and prevent the spread of counterfeit culture.
