When old tactics fail, the Asian giant deploys its soft power engine.
While President Donald Trump continues to expand and contract his tariff policy, taking his allies on a political-economic roller coaster, China seems unfazed by this frenzy that is challenging the world order.
In response to the US imposing new tariffs on goods of Chinese origin, China initially responded with a similar strategy. Beijing retaliated with a 34% increase on American products such as fruits, automobile components, and essential materials for technological manufacturing.
Until recently, the trade war between the US and China had been fought with common tactics: reciprocal tariffs and mutual threats, nothing new in this well-known dynamic.
However, this time around, the Chinese regime also launched an offensive in the most subtle way imaginable: targeting the market for American and European luxury brands through viral TikTok campaigns.
We are all aware of China’s low production costs of mass consumer goods especially in shiny pastel colors! But what would happen if someone decided to expose the fact that this market coexists very comfortably with the luxury industry?
This is precisely what the Asian giant’s strategy is all about.
In recent days, TikTok became the big megaphone for influencers, content creators, small merchants, and even important businessmen to expose the luxury market. They claim that high-end American and European fashion brands also manufacture their products in China at a minimum cost, and then sell these at prices ten times higher. By showing the origin of materials and even their production process, our perception of the luxury market falls apart. That narrative of handmade, unique, and exclusive items created for a select few was shattered with just a couple of TikTok videos shot in giant factories.
But the unexpected twist is that the strategy does not stop just there, but goes beyond directly targeting Trump’s policies and takes aim at famous brands—Louis Vuitton, Birkin, Gucci, Prada, Michael Kors are some of those named. China’s message to consumers: “Hey, would you pay $USD 38,000 for a bag in a boutique you could buy directly from a factory for $USD 1,200?” By talking to shoppers and seducing them, China redirects attention to its own country while making a good appearance in the eyes of the world.
That is probably the great feat that the US government seems not to grasp—or chooses to ignore. In a context of international tension, China has found a method that works very well not only in political or economic terms, but also culturally.
This has to do with deploying its entire soft power machinery, escalating the trade war outside traditional limits. Damaging the reputation of major brands through a moderately coordinated plan, combined with exposing Trump’s lack of other tactics to deal with its adversaries other than verbal intimidation. Revealing a more subtle way of doing politics, but not less lethal.
However, although China’s response seems to be “legitimate” in terms of free markets, there is a delicate issue that the Regime has attempted to conceal but is widely known: the country’s role in counterfeiting globally recognized brand-name products—a market in itself.
According to the US Chamber of Commerce, China is responsible for 86% of counterfeits worldwide, a market that financially accounts for $1.023 trillion. Nevertheless, at this point Xi Jinping is contemplating unleashing counterfeiters on its offensive strategy in the tariffs war.
Surely the brands called out on TikTok will not suffer major losses and the issue will probably be settled in a few weeks with a press release or through some maneuver by Public Relations departments. And surely no other country would dare to confront Donald Trump in his own league. The truth is that in just one move on the great chessboard of global trade, China has placed both Trump’s strategy and one of the world’s most lucrative markets in check.
