‘Shuǐ huò’ (water goods) is a colloquial Chinese term for gray-market goods—products imported unofficially, often without proper customs clearance, taxes, or manufacturer warranties. Though literally meaning 'water goods', the term likely originates from historical smuggling routes involving maritime transport ('water' implying covert, unregulated movement). It commonly refers to electronics, luxury watches, cosmetics, or smartphones brought into mainland China from Hong Kong, Japan, or other regions at lower prices than official channels.

Unlike counterfeit or fake goods (假货), shuǐ huò are usually authentic products—but lack local after-sales service, official invoices, or compliance with mainland safety certifications. Buyers accept these trade-offs for lower cost and faster availability. The term carries a neutral-to-slightly-negative connotation: it signals informality and regulatory ambiguity, not illegality per se, but it’s rarely used in formal business or government contexts.