This has effectively muzzled the illegal infringement of intellectual property rights and helped create a good environment for foreign investment in China, according to sources from the State Administration of Industry and Commerce, the country's market watchdog.

Local protectionism, which was one of the biggest headaches for multinational companies, has been effectively dealt with according to relevant laws including the trademark law and the anti-unfair competition act.

In three unannounced checks in Hangzhou, east China's Zhejiang Province, a large quantity of garments and accessories illegally using the "Crocodile" logo were seized by the local bureau of industry and commerce, from mid-May to early June.

In a warehouse in Hangzhou, fake Crocodile products worth more than 2.5 million yuan (US$302,000) were discovered last month.

This was the biggest case of the illegal use of famous foreign trademarks in Hangzhou to date, in terms of the quantity and variety, according to the local bureau.

Meanwhile, other cases of illegal use of foreign trademarks have also been tried in Shanghai, and provinces like Guangdong, Sichuan, Anhui and Hubei.

Bringing order to the market has topped the agenda of the administration to meet the requirements of the World Trade Organization, the official source said.

"The enforcement of intellectual property right laws in China will be gradually improved as the nation continues its institution of rule by law," said Zheng Chengsi, an expert from the Chinese Academy of Social Sciences.

(Beijingnews.com.cn 07/03/2001)