Media Updates, page-8577

Daigu trade is loosely organised trade that bypasses import tax.

Simply put it is grey importation (into China) of products that have high (local Chinese) duties and taxes.

There are some bigger "corporate" Daigus that use wholesale accounts with distis and pay taxes in Australia be it corporate, paye, income or other taxes like any aussie busineses and are also registered in China and follow chinese regulations and pay duties if it applies etc

At the other end is the single (mainly students) operaters or family run business, the ones you hear about clearing out supermarkets. These group rip off both Chinese and Australian government. Since they don't pay any Australian taxes ie income tax and ignore all Chinese imporation rules and duties.