By skyforbes 
China has brilliantly flipped the script.
China just made a really astute step that could revolutionise international trade.
This won’t come as a surprise to anyone who has visited China and seen its manufacturing capabilities,
public transportation networks,
and infrastructure.
However,
many haven’t,
and as a result,
most people are still unaware of how sophisticated and effective China has grown.
The Chinese government just made a move that has started to have an impact on the entire world.
Now,
manufacturers are allowed to openly disclose the true production costs that luxury companies pay them.
The figures are astounding.
Several reports claim that the French luxury brand Hermès pays roughly $1,400 to Chinese producers to create a Birkin bag,
which it subsequently sells for $38,000.
It’s not a typo.
These same superior products are now being sold straight to customers by Chinese producers who are swarming TikTok.
One shoe manufacturer disclosed that, with a minimum order of 100, his cost per item is only a few dollars,
and they come neatly packaged.
This implies that anyone can now enter the retail industry without falling victim to branding scams or middlemen.
We’re eagerly awaiting the day when someone discloses that the production cost of one iPhone is $70.
For those who are devoted to Apple, that figure isn’t accurate, but the markup is enormous.
Despite selling fewer units than its rivals,
Apple is among the most lucrative corporations in the world. That’s markup,
not magic.
The Illusion of Branding
In actuality,
branding is largely a scam.
Its goal is to persuade buyers to make emotional purchases rather than critical ones.
In the past,
a brand was associated with consistency,
quality,
and dependability.
It now represents psychological manipulation.
Cost-plus pricing has given way to
“what the market will bear.”
Luxurious branding capitalises on exclusivity and vanity.
For a pair of shoes that cost $5 to create,
people are spending $500.
They’ve been taught they’re better,
not because they’re better.
Governments frequently look the other way while big cartels agree on prices behind the scenes to crush competition.
The outcome?
Entire industries are controlled by giant corporations,
which deplete consumer wealth by exporting production to nations like China.
China Produces High-Quality Goods;
the West Purchases Cheap
We’ve been told for years that Chinese goods are subpar.
That is untrue.
Chinese engineers and labourers are highly skilled;
Western businesses just select the least expensive production solutions in order to increase profits.
My daughter’s cosplay club ordered costumes from China twenty years ago because they were better manufactured and significantly less expensive than those made locally.
In actuality,
China has always possessed the manufacturing capacity to create high-end products.
They simply couldn’t say that.
That’s changing now.
Chinese companies can now directly expand internationally thanks to President Xi Jinping’s opening of the gates.
The curtain is being drawn back on what Western businesses don’t want customers to see as TikTok emerges as the new marketplace.
Implications for the Future
When the world learns the true cost of commodities, what will happen?
when customers may get the identical product for 10% less and avoid the branding scam?
The global retail scene is constantly evolving.
“We make Apple’s laptops — we can build you the exact same machine, minus the logo, for $150,”
is an example of what manufacturers might publicly state.
Or
“This is a $10 handcrafted leather shoe with arch support.”
Of course,
Trump and others will impose restrictions and tariffs in retaliation.
However,
the harm to Western brands has already begun.
Consumer trust in Western business may never fully return once they realise how severely they have been overcharged,
not just by a small amount but by orders of magnitude.
A Global Power Tectonic Shift
This whole dynamic has been misinterpreted by the Trump administration.
“We import more than we export”
is a weakness,
not a strength.
Chinese manufacturing is essential to the U.S. economy.
America’s overburdened retail sector may face consequences if China chooses to open up its supply chains and allow direct sales to customers.
The Western luxury fantasy is dissolving in real time as more manufacturers come forward and disclose their true price structures.
And TikTok is where it’s all happening.
So,
get the popcorn.
Because things are about to get really, really interesting in the global economy.
Note: In accordance with the author’s note,
the original typos were retained for highlighting purposes.
They are eliminated for clarity in this revised version.
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