On April 11, 2025, Kevin O’Leary, a prominent investor from Shark Tank, discussed the financial hurdles faced by North American startups due to competition from Chinese manufacturers during a call with unnamed media outlets. He pointed out a troubling pattern where significant investments in research and development (R&D) are undermined by the rapid reproduction of similar products at substantially lower prices by these manufacturers.
O’Leary provided a clear example: companies investing around $10 million in R&D often find their products quickly duplicated and sold at a steep discount in various markets. He stated,
“As soon as it gets to a run rate of five million annually, almost 100% of the time it gets knocked off in China,”
Kevin O’Leary’s Call for Stricter Trade Measures
Reflecting on the challenges startups face, O’Leary emphasized that the R&D phase is instrumental for a company’s pricing strategy, which must take into account production costs and development expenses. Chinese manufacturers, however, often bypass this essential phase entirely. O’Leary elaborated,
“The company has to recoup the $10 million that it made, let’s say in R&D. The Chinese don’t so they knock it off and they reintroduce it into the American and Canadian and Mexican market and European market too at 30% to 40% off of the price you’re selling it at because they don’t have to recoup anything.”
This is not a new concern for O’Leary. Just a day earlier, during his testimony before the Senate on April 10, he presented numerous instances of American firms grappling with similar manufacturing difficulties. In this context, he stated,
“American companies have always performed well anywhere on Earth when given a chance on a transparent and competitive playing field. That’s not the case in China. I’d like to see tomorrow morning 400 percent tariffs.”
The Senate committee meeting led to an in-depth analysis of the widespread issue of production duplication. Chairman Scott highlighted WeatherTech, an Illinois-based company, which encountered identical copies of its products on Chinese platforms without any formal business relationships or manufacturing agreements. In response, O’Leary stressed,
“They got nothing for it. What would be their recourse? Right now, there is nothing they can do. You have just told the story of a million small businesses in America over the last 20 years. They’re knocked off by China, very often the same plants that ran the molds under a relationship they had with the company.”
About Kevin O’Leary
Kevin O’Leary’s business journey encompasses a series of successful ventures, as detailed by nsb.com. His most notable achievement came with Softkey, later known as The Learning Company, which was acquired by Mattel for $4.2 billion in 1999. Before founding Softkey, he co-established Special Event Television, marking his foray into sports broadcasting.
In 2015, he expanded his financial services portfolio by launching an exchange-traded fund (ETF) through O’Shares Investments. Currently, he is spearheading a $70 billion AI Data Centre project in Alberta, emphasizing his commitment to technological innovations.
As Chairman of O’Leary Ventures, he manages investments across diverse sectors while maintaining his role on Shark Tank, where he is renowned for his candid business insights. Beyond investment shows, his media presence began with Dragons’ Den in Canada and later transitioned to Shark Tank, gaining notable recognition for his direct communication style.
Through his company, Something Wonderful, O’Leary oversees various investment opportunities while remaining a leading voice in business media. For the latest updates, you can follow him on Instagram at @kevinolearytv.