Chinese clothing factories go viral with tariffs loophole on Nike, lululemon and more

Historically, consumers have had little insight into the origins of their clothing, and the price breakdown of each piece. But social media platforms like TikTok allow manufacturers to speak directly to potential customers halfway across the world. Chinese e-commerce sites like Alibaba and Taobao (both owned by Alibaba Group), which function as marketplaces for suppliers, are also collapsing the relationship between consumer and manufacturer.

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The popularity of such videos among consumers in the US and abroad, Zhang says, also reflects American consumers’ fears around the introduction of tariffs.

“The reality is the [US] domestic market is not ready to absorb all the production capacity from China.”

She also thinks such videos convey a sense of “[Chinese] nationalism on social media, even implicitly directed by the Chinese official media.”

“The Chinese have this determination to fight to the end with the US, and they’re not bending down to the US bullies,” she says.

Indeed, much of this content coming out of China carries a disdainful, mocking tone. Zhang points to a viral AI-generated video circulating on Chinese social media sites last week showing overweight Americans working in garment factories.

While steep tariffs on goods from countries like China will mean all incoming packages from overseas will be subject to duties and fees, Zhang doubts the US will have the “institutional power” to enforce regulations around individual parcels arriving from China.

At home, Zhang expects US tariffs – and the ensuing clapback from China – to have “a strong negative impact on some Australian brands”, many of which rely on manufacturers in Vietnam and China.

While these videos mainly seem to target US brands, many also feature luxury goods from European companies such as Dior, Louis Vuitton and Hermes. All three manufacture their bags in Europe, despite claims on social media.

Marine Guillou, a principal at Phillips Ormonde Patrick who specialises in anti-counterfeiting and IP, says it’s extremely unlikely these claims from Chinese factories are legitimate. She points out that many are actually sourcing agents, rather than manufacturers.

“That’s completely different from manufacturers. Anybody can be sourcing items. I would be extremely cautious as a consumer, if someone said ‘I’m from this company and I have it 10 times cheaper’.”

While it’s impossible to say for sure, she suspects most manufacturers of these Western brands would be bound by strict non-disclosure agreements. And she says most legitimate manufacturers would not want to jeopardise their relationship with brands.

“If you have a contract with them, you want to keep them. It’s a long-term partnership.”

Whether the legitimacy of these products matters to customers remains to be seen – suppliers and manufacturers in China certainly seem to be taking advantage of current conversations around Trump’s tariffs.

“Most people who are going to watch a video on TikTok, they’re never going to crosscheck anything. It’s not even the point,” says Guillou.

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