"There's two issues": Shark Tank's Kevin O'Leary discusses problems that small businesses have been facing against China

On April 25, 2025, Shark Tank investor Kevin O'Leary shared a video clip via Instagram, discussing issues that small businesses face. He mentioned two issues regarding small businesses, which are related to China.

Kevin O'Leary stated the issue related to manufacturing units located in China. He noted that a potentially successful company from the US spends money on research and development and gets the product ready after a lot of research. However, within "weeks," the products are "ripped off" and sold at higher discounts.

The Shark Tank investor mentioned:

"China's a different story. There's two issues that small business concerns themselves with China. One is, okay, we manufacture there, but we would also like to resolve the problem we've had with China for over 20 years when successful company, the nascent company in the US, spends money on R&D and gets a product that gets to a $5 million run rate in the domestic market in the United States. Within weeks, it's ripped off in China and sold at 30 to 40% discounts, sometimes off the same molds in the factory."

Shark Tank's Kevin O'Leary opens up about small businesses facing issues, including inflation, tariffs, and more

Recently, Shark Tank's Kevin O'Leary opened up about the tariffs, inflation, and more issues that small businesses have been facing lately. He mentioned that they have not yet felt the issues caused by the "China negotiation". However, they have concerns.

"I listen to the narrative and the noise versus the signal of what's really going on with China. In addition to the other tariff discussions in other markets, including India, Vietnam, Cambodia, many small businesses, including those in my portfolio use those countries for manufacturing," he said.

For example, he talked about LovePop greeting cards. Their laser farms are located in Vietnam, while the cards are designed in Boston. After designing, they are sent digitally every day. After they are cut in Vietnam, they are air-shipped. Shark Tank mentor called it a "successful model."

"Obviously, we're concerned that we get these tariffs to zero with Vietnam. And that seems to be moving in the right direction. So we haven't felt the full impact of that yet, or concerned."

However, talking about China, Kevin O'Leary said it was a "different story." Among the two issues, he said that, first one was the manufacturing issue. He said they manufacture in China, but also want to resolve the issue. He noted that they have had issues for over 20 years.

Further, O'Leary Ventures chairman said that American entrepreneurs' products are "ripped off" and sold at 30-40% discounts. For that, he noted that the same products are sometimes manufactured from the same molds in the factory, at night. There was no way to resolve such a dispute, and the World Trade Organization couldn't resolve it in 20 years.

He added that, on top of being unable to litigate that in Chinese courts, the Chinese can use the American legal system and sue them, which he said was "completely unbalanced."

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