Counterfeit IP products are only 0.02% of imports
"The Organisation for Economic Cooperation and Development said trade in fake goods represented two per cent of world trade. It said physical trade in counterfeit goods was worth $200bn a year."
Trouble is the OECD number is just a guess, they plucked a percentage from the air, multiplied it by the value of imports, then tried to explain why these counterfeit goods remain undetected.
On the other hand, the US General Accounting Office has actually measured it by opening up containers at random and inspecting them.
It was on average 0.02% of goods by value. So it's likely negligible in terms of imports into Europe.
As for stamping out counterfeiting in China sold internally in China, the problem you have there is that the goods are made in China. Your expensive Italian designer bag only has it's handle's sown on in Italy and the badge sown on to qualify as 'made in Italy'.
I don't see how China will change their laws. Those luxury goods makers will continue to make their goods in China, finish them in Europe and continue to pass them off as European luxury goods. So China has nothing to lose and everything to gain by us protecting those fake European luxury goods import channels.