"Chinese OEM Companies Emphasize Importance of Intellectual Property Protection"
"'Made in China' Gains Global Reputation"
Amid growing attention to videos by Chinese influencers claiming that products from well-known brands such as Lululemon and Nike can be purchased for just a few dollars from Chinese OEM factories, China has announced a crackdown.
On April 26, China's state-run Xinhua News Agency reported that the Ministry of Commerce announced on its website the previous day that "clues regarding illegal activities such as false marketing disguised as original equipment manufacturing (OEM), trademark infringement, and counterfeiting will be promptly transferred to administrative enforcement departments for investigation and handling."
On Chinese TikTok, content promoting "We are an OEM factory for luxury brands" and encouraging viewers to "buy directly from us at a low price" is increasing. TikTok
Recently, Chinese TikTokers have been asserting that luxury brands are actually manufactured cheaply in Chinese factories, releasing videos of the production process and price information, and actively encouraging direct purchases. As these videos have attracted global attention, it appears that the Chinese government has decided to take action out of concern that China's status as a global OEM manufacturing hub could be undermined.
The Ministry of Commerce emphasized, in response to claims that famous products can be purchased cheaply from OEM factories, "According to confirmation from relevant industry associations, Chinese OEM companies place great importance on intellectual property protection and manufacture and ship products in accordance with contractual requirements to maintain the international reputation of the brands."
Recently, one TikToker released a video claiming that the production cost of the Hermes Birkin bag, considered a top-tier luxury item, is $1,395 (about 2 million won), while the actual retail price reaches $38,000 (about 54 million won), garnering over 7.8 million views. Another TikTok influencer supported the claim that most of the high price comes from the 'brand logo,' stating, "Lululemon yoga leggings, which sell for more than $100 in the United States, are actually made in Chinese factories for $5 to $6." Most of those making such claims also shared website addresses and contact information, promoting, "Contact us directly to purchase these products at unbelievable prices."
The videos have drawn attention as a potential way to circumvent the additional tariffs of up to 145% imposed on China by U.S. President Donald Trump. The Chinese Ministry of Commerce stated, "Although the United States has recently imposed unilateral tariffs on China, many American consumers are still flocking to online shopping platforms to stock up on Chinese products," adding, "This clearly demonstrates that Chinese goods are of high quality and low cost. 'Made in China' is renowned worldwide and welcomed by consumers in many countries, and tariffs cannot change the rules of the market."
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