A surprise new battleground is forming as the trade war between the united states and china heats up: the luxury clothes sector. According to a recent Glitz article, beijing might relax regulations on fake luxury products, particularly those that imitate high-end european and American names, in retaliation for US tariffs.

The Chinese government quickly retaliated with its own 125% tariffs after President donald trump put an astounding 145% tariff on Chinese imports. "We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of 'reciprocal tariffs' and return to the right path of mutual respect," a statement from China's Ministry of Commerce stated.

According to Trump's 'Liberation Day' speech on april 2, a temporary 90-day halt on further tariffs was declared.  A new 'semiconductor tariff' is allegedly in the works, even though certain devices, such as those manufactured in china, were given exemptions.

The counterfeit curveball
Official talks are still ongoing, but there seems to be a growing subterranean resistance.  Videos of Chinese factory insiders revealing the inner workings of luxury brand production have been widely circulated on social media, particularly on TikTok.  In one widely shared video, a man is seen standing in a warehouse filled with bags that remarkably resemble expensive designer goods.
 
"For over 30 years, we've been the OEM factory for nearly every luxury brand you can name," adds the individual. "But we were just workers- we made pennies while brands made billions."
 
He brags about China's unparalleled supply chain agility, workmanship, and quality control, implying that efforts to shift luxury production outside of china have failed because of subpar quality elsewhere. What was his message? Avoid the middlemen and purchase straight from us.

Factory Secrets Go Viral

Other TikTok creators are following suit. One woman revealed that Beyond Garments, a Hangzhou-based manufacturer, produces knits and cardigans for brands like Dior, Sandro, Maje, and Versace. Another video exposed Thai Ho Group as the producer behind cosmetics sold under Dior, Lancôme, and L'Oréal.
 
 



 

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