How Tiktok became a popular tool for Chinese manufacturers to circumvent the American rate policy – times of India

American Tiktok users are increasingly encountering an increase in videos of Chinese content makers that encourage Americans to buy goods directly from Chinese factories -a clear strategy to circumvent the rates of the Trump administration.
These viral clips, often filmed in production facilities that supposedly produce for large American brands such as Lululemon Athletica Inc. And Nike Inc., emphasize the Chinese origin of many consumer products. “Why don’t you just contact us and you don’t buy directly? You won’t believe the prices we offer,” says a maker in a video that promotes luxury handbags, according to Bloomberg.
In a widely scattered clip, Tiktok -user @lunasourcingchina shows a factory that, according to them, lululemon yoga laying produces for only $ 5 to $ 6, compared to the selling prices of more than $ 100 in the US. “The material and craftsmanship are basically the same,” she claims.
Lululemon has since responded and clarified that only about 3% of its end products are made on mainland China and emphasizes that authentic dululemon products are sold exclusively through its official channels and partners.
Although many of these videos were already uploaded in March, they recently received a considerable traction in the midst of increased trade tensions in the US china. A video entitled “China has exposed the truth” has collected 8.3 million views and 492,000 likes. The clip is said to have exposed a dululon supplier, attracted 2.6 million views and more than 215,000 likes, while another, entitled “How we bypass rates,” Almost 1 million views and 118,000 likes.
Alex Goldenberg, senior intelligence analyst at the Network Contagion Research Institute at Rutgers University, regards the trend as a deliberate urge to weaken President Trump’s rate and to elevate Chinese production via the powerful algorithm of Tiktok.
Although the actual legal mechanics of tariff avoidance through the purchase of direct to consumers remains cloudy with the exemption for small Duts that expires on 2 May, the phenomenon of questions about tariff effectiveness and the broader impact on American consumers.
Chinese goods are currently subject to a cumulative rate percentage of 145%. Although Trump has temporarily suspended extra rates at selected countries for 90 days, China is not there.
These viral taps -messages are also the growing concern about the influence of Chinese makers on the American public and the opaque nature of content distribution on the platform. These concerns feed on continuous efforts in Washington to force a separation between the Chinese parent company of Tiktok, Bytedance Ltd. And the global activities.
In addition to trade policy, the videos can have legal consequences. Some observers believe that the disclosure of the NDAs factory can violate worldwide brands and can endanger supplier relationships, such as according to Bloomberg.
Cameron Johnson, senior partner at Tidalwave Solutions, interprets the trend as part of a broader global Sourcing shift-of traditional intermediaries to factory direct models of how Americans shop and how brands protect their supply chains.