Counterfeiting of consumer goods remains a big headache, too.
But counterfeiting of computer software and movies on compact disks is now more common than ever.
"Between 2004 and 2006, there was a lot of counterfeiting of this drug," he said.
American officials say the North is engaged in money laundering and counterfeiting of dollars, charges that it denies.
Under President Bill Clinton, several prominent agreements were reached to end counterfeiting of tapes, movies and compact discs.
In past centuries, the counterfeiting of coins with images of monarchs was a serious crime, carrying punishments as severe as death.
Two years ago, China and America teetered on the edge of a trade war over the widespread counterfeiting of music, video and software by CD plants in China.
The range of forgeries extends from misrepresentation of a genuine work of art to the outright counterfeiting of a work or style of an artist.
Most of these agreements involved familiar commitments by the Chinese to take stronger action against piracy and counterfeiting of trademarks and of software, movies and other intellectual property.
According to officials, these cases could involve crimes like fraud in the European Union budget or counterfeiting of euro notes and coins.
Many of the transfers, the authorities said, represented undeclared income from Chinese-run businesses, or money generated by the counterfeiting of Italian fashion goods.
