Innovation and Intellectual Property Rights(IPR) - I

Whats up in China? McKinsey Quarterly published an article on Brazil's informal economy. The article compared the size of various informal economies across the globe. I was surprized to see China among the countries with very small informal economy. Last week I visited Beijing and had an opportunity to visit the market in Beijing. There was not a single thing that was orignal in the market. It was difficult to imagine China ranked that good in the Mckinsey article. does it mean that the Chinese informal economy is not informal at all or where do you draw line to seperate an informal economy. Does governments suppport make chinese informal economy legal? Do informal economies span national borders, as in Chinese case most of these goods are sold outside china?