What term is used to describe the illegal trade of consumer goods in China that bypasses government regulations?

The term that describes the illegal trade of consumer goods in China, which circumvents government regulations, is "gray market." The gray market refers to the sale of goods through unauthorized channels, typically where products are imported and sold without the permission of the original manufacturer or without adhering to the legal frameworks established by the government. This can include items that are legally obtained but sold in ways that violate the regulations governing distribution and pricing.

In the context of consumer goods, the gray market often arises when products are imported into a country without the appropriate permissions or when they are sold at prices that are not regulated, hence bypassing official sales channels that the government may have set up. This makes it distinct from the black market, which deals with goods that are illegal altogether (such as drugs or stolen items), and is usually more focused on legality and regulation rather than simply unauthorized sales.