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The U.S. government is finally cracking down on a growing threat from China—not just counterfeit goods, but counterfeit postal labels used to flood American markets with cheap, often unregulated products.
Click here to read what happened!On May 15, 2025, the United States filed a civil complaint in federal court in Brooklyn against two shipping logistics companies—YDH Express, Inc., YDH Int’l Inc., and their owner/operator, Yizhao Hou (also known as Harvey Hou). The complaint alleges that these Defendants committed mail fraud and conspired to commit mail fraud for years by shipping thousands of parcels through USPS using counterfeit USPS postage labels. These parcels originated from customers located in China.
The complaint seeks injunctive relief under the Anti-Fraud Injunction Act, as well as additional remedies to recover financial losses suffered by USPS. The government also requested—and on May 16, 2025, United States District Judge Natasha C. Merle granted—a temporary restraining order immediately barring the Defendants from using USPS to mail parcels, pending further court orders.
“This scheme has allowed these Defendants and their foreign customers to undermine the integrity of the USPS and defraud it of millions of dollars,” said a DOJ spokesperson. “We are committed to protecting the U.S. postal system and ensuring those who exploit it face serious consequences.”
This isn’t just about lost revenue. It’s about China’s increasingly aggressive tactics to dominate global e-commerce at any cost. By weaponizing low-cost shipping and evading regulations, Chinese sellers gain an unfair advantage, undercutting U.S. businesses while shipping questionable or even counterfeit goods directly to American consumers.
“It is critical that we stop the flow of counterfeit labels and goods, which threaten not only our economy but the safety of consumers,” the complaint states.
It’s not the first time Chinese e-commerce has skirted the rules—but this blatant abuse of international shipping systems is a new low. The U.S. has every right—and obligation—to protect its borders, its postal system, and its economy from being gamed by a foreign power exploiting loopholes for profit.
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