Why does the Chinese Communist Party government allow piracy and copying culture?

Beijing, the capital of China, also offers huge capitals of fake goods and counterfeit items. It is almost an accepted norm in China's society that piracy is part of their lives. The police patrolling the streets of Beijing pass by several stalls of fake products but they don't arrest anyone. In fact, if you call their attention and tell them that there's counterfeit goods selling nearby, they will just laugh at you.