BEIJING - CHINA - home to the biggest counterfeit and piracy market in the world - has said it will launch a nationwide crackdown on fake goods in a bid to improve the country's image abroad.

The State Council, or cabinet, said on Tuesday it would 'launch a special campaign to fight intellectual property rights infringement and the manufacture and sale of counterfeit goods' at a meeting chaired by Premier Wen Jiabao.

The six-month campaign, which includes making sure government organisations use genuine software, will begin at the end of October, the State Council said in a statement.

IPR infringement and counterfeit goods 'upset the market's normal order, impair the competitive strength and innovation of businesses, and hurt China's image abroad,' it said.

China's counterfeit and piracy market employs millions of factory workers, distributors and shop assistants across the nation.

Authorities have launched crackdowns before, and Beijing says it has managed to stamp out some of the existing Internet piracy and copyright infringement. But analysts say graft and weak policing mean factories still continue to churn out fake goods, costing foreign and domestic firms billions of dollars in lost revenue.

China cracks down on fakes