China is responding to US President Donald Trump’s tariff war with all-hands-on-deck approach.
While the Chinese regime has slapped retaliatory 125 per cent tariffs on US goods and halted the export of critical and rare earths that threatens to bring production of a host of goods from cars and semiconductors to and weapon systems to a halt across the world, the Chinese industry and influencers have joined hands to take the trade war directly to US luxury brands that Americans love.
In what appears to be a coordinated strategy, the Chinese regime and industry appears to be following a two-pronged approach.
Firstly, Chinese manufacturers, with Beijing’s go-ahead, appear to be ready to flood the international market with counterfeit luxury products to hit at US and other Western luxury brands.
Secondly, Chinese influencers have are discrediting Western luxury brands by flooding TikTok and other social media platforms with videos that show that expensive goods of Western luxury brands are made dirt-cheap in China. They are urging customers to purchase goods, such as luxury bags and other accessories, directly from Chinese manufacturers at a tiny fraction of the cost that Western brands sell these products.
In a video on TikTok, a person claims to be manufacturing bags for French luxury brand Birkin for just $1,400 that he says the brand sells for $38,000.
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More Shorts“More than 90 per cent of the price is for the logo, but if you do not care about the logo and want the same quality, same material, you can just buy from us,” says the person.
Are counterfeits China’s secret weapon in trade war?
As it appears, China is weaponising counterfeits yet again.
After all, counterfeits have long been a speciality of China.
China accounts for 86 per cent of world’s counterfeits, according to the US Chamber of Commerce.
Overall, the trade of counterfeits accounts for 3.3 per cent of global trade, as per a study by the Center for Anti-Counterfeiting and Product Protection of Michigan State University.
This means that China controls around $818.4 billion of the world’s total counterfeit trade of approximately $1.023 trillion.
An article for Glitz, a French investigative outlet focussed on the fashion industry, notes that China is mulling giving free rein to counterfeiters, particularly those targeting US luxury brands in retaliation Trump’s tariff war.
China’s counterfeit offensive is expected to hit Western luxury brands such as Ralph Lauren, Tom Ford, Calvin Klein, Coach (Tapestry), Jimmy Choo (Capri), The Row, Estée Lauder, and La Mer, according to Glitz.
Videos flooded by Chinese influencers on the internet have also targeted other brands such as Zara, H&M, and Stanley.
In a video, a user says, “Your ’expensive’ Stanley cups and bags are made in China and sold very cheap. Xi Jinping is fighting everyone here! Wow.”