**New York**: As tensions over trade escalate, Chinese manufacturers ramp up TikTok marketing efforts, offering luxury goods at lower prices to American consumers, exploiting tariff policies while raising concerns over counterfeit products and the implications for intellectual property rights.
Chinese factories are intensifying their marketing efforts on TikTok, urging American consumers to purchase directly from them in a bid to circumvent the extensive tariffs imposed by former President Donald Trump. A wave of viral videos claims to offer products made for high-end brands like Lululemon and Louis Vuitton at a mere fraction of their retail prices in the U.S.
In one particularly popular video, which has garnered nearly 10 million views, a content creator asserts that they can sell yoga pants produced by the same manufacturer that supplies Lululemon for just $5 to $6, in stark contrast to Lululemon’s typical $100 price tag in the States. “The material and the craftsmanship are basically the same because they come from the same production line,” the individual is seen claiming in front of what looks to be a factory.
Similarly, another video features a man on a factory floor stating he can source Louis Vuitton bags directly for around $50. However, both Lululemon and Louis Vuitton have denied that their goods are manufactured in China. A spokesperson for Lululemon informed The Independent that approximately only 3 percent of its finished goods are produced in mainland China, and the company offers a comprehensive list of its manufacturing partners on its website.
Experts, including Conrad Quilty-Harper, the author of “Dark Luxury,” have commented on the situation, suggesting that these videos likely stem from counterfeit or “dupe” manufacturers attempting to exploit the current economic climate affected by the tariffs. Quilty-Harper noted, “They’re trying to conflate the fake manufacturers in China with the real manufacturers,” highlighting the savvy nature of these social media campaigns in generating demand within Western markets.
The ongoing trade war has seen Trump enact a 145 percent tariff on all Chinese goods, although certain items such as smartphones and some electronics have recently received exemptions. In retaliation, China has imposed its own tariffs of 125 percent on American imports. This ongoing conflict has prompted a noticeable uptick in TikTok videos targeting American consumers, showcasing both high-quality products at lower prices and arguments against the U.S. tariffs imposed on Chinese imports.
Many of these videos are characterised by high production values, likely made by influencers hired by the factories. Others are more utilitarian, appearing haphazardly created on the factory floor. They typically include links to the manufacturers’ websites along with instructions for purchase. As of May 2, the previous exemption for imports from China under $800 is set to expire, which may further drive the urgency of these promotions.
While some American TikTok users have reacted positively to these videos for unveiling a less explored aspect of the luxury goods industry and effectively undermining tariffs by eliminating middlemen, the counterfeit market in China remains a significant concern. U.S. Customs reported seizing counterfeit items valued at approximately $1.8 billion in recommended retail price in 2023.
Quilty-Harper emphasised that the counterfeit issue in China has long been a point of contention for Western companies, with enforcement of trademark and intellectual property rights often fluctuating based on the prevailing geopolitical climate. “In the past, the Chinese authorities have been stricter on it, and sometimes they’ve been looser on it, and often that’s to do with the relationship with the US and previous presidents,” he explained. This situation epitomises the ongoing geopolitical struggle between America and China over intellectual property, further highlighted by the proliferation of high-traffic TikTok videos that serve as both advertisements and a battleground for opinion on tariffs.
Source: Noah Wire Services
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