How China Rips Off American Small Businesses

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Let's say you have a product that you're going to use Chinese manufacturing. You used to think it was low cost. You buy the molds, you spend $400,000 on molds. You start making the product, you start selling it in the United States.

The minute it passes $5 million in sales, you're going to see that product on Alibaba at two-thirds off, and they'll try and put you out of business. You prove the market for them, and they're selling it right here in the United States.

There's no way you can protect your IP. They're using your molds to screw you. This story has happened thousands of times, and there's no way we can stop it.

So when people come at me with academic studies about changing China's behavior not to do that, they're not dealing with China like I am. I'm in the real world.

These guys do not play by the rules, and the only thing they understand is the stick. We need to give them the stick. Now, I like— I don't like tariffs. These are short-term strategies, but if you shut them down and you cause economic pain, they'll come to the table.