A report by the US Chamber of Commerce’s Global IP Centre says that as much of 86% of the world’s counterfeit goods originate from China.

The Measuring the Magnitude of Global Counterfeiting report provides a breakdown of the share of physical counterfeiting for the 38 economies included in the U.S. Chamber of Commerce International IP Index.

“From fake medicines to bad brakes and lead-laden toys, counterfeit goods pose a real danger to consumers and a costly threat to the business community,” said Mark Elliot, executive vice president of GIPC. “The 2016 International IP Index shows that leaders in both developing and developed economies increasingly recognize the connection between effective intellectual property protection and achieving their greatest economic potential. Similarly, this counterfeit report provides a closer look at the role individual economies play in this growing, global concern. For example, it is apparent that we need increased focus in the China and Hong Kong markets to combat counterfeits.

Similar to data recently released by the Organisation for Economic Co-operation and Development (OECD), GIPC’s report found that as much as 86 percent of all global counterfeits originate in China and Hong Kong’s markets, with the next largest share making up less than half a percent of global counterfeits. The report also suggests that customs authorities are only seizing as little as 2.5 percent of the value of total estimated counterfeits.

The 38 economies, chosen from the U.S. Chamber of Commerce International IP Index, account for nearly 85% of global gross domestic product (GDP). The Index is based on 30 measurable criteria critical to innovation including patent, copyright and trademark protections; enforcement; and engagement in international treaties, among others.

The Index ranks the economies in Algeria, Argentina, Australia, Brazil, Brunei, Canada, Chile, China, Colombia, Ecuador, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mexico, New Zealand, Nigeria, Peru, Poland, Russia, Singapore, South Africa, South Korea, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates (UAE), United Kingdom (UK), United States (U.S.), Venezuela, and Vietnam.