"Knockoffs flood the market": Shark Tank investor Kevin O'Leary opens up about what happens after an American entrepreneur builds a product

Shark Tank's Kevin O'Leary shared a video clip via Instagram on April 25, 2025. He shared his thoughts on how China didn't "respect" the rules after they were invited to the World Trade Organization.

He mentioned it has been twenty years, but they have not complied with the rules. O'Leary Ventures chairman stated that when a U.S. entrepreneur works on a product and builds it, soon, "knockoffs" flood the market.

Referring to how, without any research and development or patents, U.S products are being sold in China, the Shark Tank mentor stated:

"Look, we invited China into the World Trade Organization, thinking they'd respect the rules. They never did. Not in year one, not in year twenty. And when a U.S. entrepreneur builds a winning product, boom—knockoffs flood the market. No R&D, no patents, no consequences. That's the problem. We let them get away with it."

Shark Tank judge Kevin O'Leary shares his thoughts on issues that U.S. entrepreneurs face

Shark Tank investor Kevin O'Leary recently shared an Instagram clip where he recalled 2020, when China was invited to the World Trade Organization:

"I think it was Clinton's administration, 2020, when he said, look, the way to win over China is to give them a taste of democracy on a worldwide basis. Let's invite them into the World Trade Organization if they're willing to abide by the covenants of all the other nations and bring them as a trading partner into the big leagues."

At the time, China agreed to comply with the rules. However, since then, they "never ever complied" with a "single covenant."

"China said, yeah, we'll do that. Now, whether the administration of China then had the same feelings about this as Xi does, who knows, but they never, ever complied to a single covenant. Not the first week, not the 20th year," the Shark Tank mentor added.

Kevin O'Leary stated that it was "racked and stacked" with grievances, "never ever" resolved in the World Trade Organization.

Further, he discussed American companies and how entrepreneurs develop new ideas and businesses. An entrepreneur builds a product and gets it patented, as they have a "great idea." After it reaches 5 million, there are "knockoffs" of the same product, which are also available at 40-50% off.

Individuals selling these "knockoffs" did not have to go through any research and development phase or pay any legal fees for patenting. They don't care because there are no consequences to such things happening.

Trending

To stay updated with all such business and finance trends, fans can follow Shark Tank's Kevin O'Leary via his Instagram (@kevinolearytv).

×

Was this article helpful?

Thank You for feedback