The Anti-Counterfeit Authority has returned Kes50 million seized goods to China Square after it was established they were not counterfeits.

The authority said the complainant, Smithmo Company Ltd, withdrew the complaint after confirming that the 'Finder' branded goods were sourced from the same manufacturer and international brand owner in a statement on Thursday.

"We would like to inform the public that the complainant in a letter dated February 27, wrote to ACA and requested to withdraw the complaint against China Square. In light of this new information, ACA conducted a thorough investigation and verified the source of the goods and we can confirm that they are authentic Finder Tools. As such, we have released the goods to the rightful owner," ACA said.

The goods were seized on February 16 after Smithmo made a complaint to the anti-counterfeit agency.

The goods included hardware materials.

This comes a day after the Chinese government issued a response to the China Square Controversy in Kenya which has spurred a heated debate among Kenyans.

 The Chinese delegate argued that Kenyans should welcome businesses in both countries because doing so would boost trade and aid Kenya's economic growth.

Chinese Foreign Ministry Director General Wu Peng, stated that Kenya was one of their main trading partners and that they would keep promoting commercial ties between the two nations.

Further, he stated that Kenya has profited from Chinese firms, making the brothers and sisterhood between the two nations extremely important.

As a result, China has committed to ensuring that the connection between Kenya and China is still there for the good of all parties involved.