Jianggan Li, Founder of Momentum Works, joins Jeremy Au to unpack the evolving trade dynamics between China, Vietnam, and the United States. They compare Vietnam’s swift concessions with China’s calculated rare earth strategy, discuss the blurred lines of transshipment, and explore how Apple, Pop Mart, and Labubu reflect larger trends in global manufacturing and consumer behavior. The conversation also reveals how Chinese brands are outpacing global competitors in TikTok marketing and why luxury culture in China is undergoing a quiet transformation.

02:28 China used rare earths as a strategic trade weapon: Jianggan references a Deng Xiaoping quote from the 1980s highlighting rare earths as vital. China’s long-term planning turned these materials into a key negotiation tool, influencing American industry pressure and leading to relaxed US restrictions without an official announcement.

04:56 Vietnam offered zero tariffs on US goods to secure a deal: Faced with a sudden 46 percent US tariff, Vietnam’s leadership moved quickly. To Lam personally called Trump and agreed to a deal where Vietnam’s exports would face 20 percent tariffs, suspected transshipped goods 40 percent, and US imports would enter Vietnam tax-free.

08:41 Vietnamese factories feel pressure from China’s scale and efficiency: Mid-sized business owners in Vietnam, even those driving Porsches, admit they can’t compete with China on speed and cost. The concern is especially acute for standardized products without strong local customization needs.

13:20 Transshipment rules are hard to define and even harder to enforce: A Made in Vietnam label can apply if 40 percent of value is added locally but calculating that percentage is difficult. Inputs often come from China, and enforcement depends on both accounting practices and political discretion across borders.

17:25 US criticism of Apple’s China ties expands across party lines: A Daily Show clip highlights Apple training Chinese factories and hollowing out US jobs. This marks a shift in criticism from being Republican led to becoming bipartisan, with concerns about offshoring now voiced by Democrats as well.

29:22 China’s middle class shifts from luxury logos to quiet quality: Before the pandemic, wealth was flaunted through bags and status goods. Post-pandemic, that has changed. Consumers now see luxury as a stupid tax and prefer high-quality domestic brands that offer better value.

34:03 Labubu’s rise shows China’s edge in branding and execution: Pop Mart succeeded by combining designer signings, local manufacturing, and fast restocking strategies that undercut scalpers. The brand also leveraged deep operational know-how from Douyin, giving it a major advantage on TikTok over Western brands reluctant to invest in the platform.

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