"They can't do without us"— Shark Tank investor Kevin O'Leary claims China’s reliance on US consumers protects American leverage in global trade

In a clip from a recent Fox News interview posted on Instagram on April 14, 2025, Kevin O'Leary, a prominent investor on Shark Tank, discussed the importance of the US consumer market in global trade, particularly in the context of US-China relations.

When asked about the impact of Chinese trade practices on American businesses and consumers, O'Leary emphasized that China depends on the US market for economic stability.

"My point is they can't do without us," he stated.

According to O'Leary, China's reliance on the US as a consumer market offers the United States significant leverage in negotiations and trade agreements with China, especially in areas such as tariffs and market access.

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Shark Tank's Kevin O'Leary highlights China’s economic reliance on US consumers in trade discussions

US consumer spending drives trade power

Kevin O'Leary identified the size of the US consumer market as a primary reason for its influence. He stated that the US accounts for 26.1% of global GDP, which gives the country a strong position in global trade relations.

"The largest consumer market on Earth, almost 40 percent is United States of America," he said.

The Shark Tank investor explained that China's export model depends on continuous demand from US consumers. If this demand declines, Chinese factories will be impacted.

"If they don't have the ability to sell, this stops... and make it in the factories and employ millions of people, those people become unemployed," he said.

He noted that this economic pressure is significant in shaping China's policy decisions regarding international trade.

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Political implications of economic dependence

O'Leary linked China's economic health to its political structure. The Shark Tank investor referred to the Chinese leadership by saying,

"When you're not a, let's call the Supreme Leader ... He can't keep his job."

He pointed out that even though the leadership does not face elections, public dissatisfaction due to economic issues could result in instability. O'Leary stated that if basic needs like food cannot be met and public unrest occurs, the position of China's leadership would be at risk.

He emphasized that this potential for "people can't eat" and being "in the streets rioting" makes prolonged trade disruption unlikely. He described the situation as "mutual destruction" if extended over time, but added that it "won't be long-term." He also stated that negotiations must go beyond tariffs and include broader reforms.

"You've got to clean up your act with the WTO and access to your courts and access to your markets," he said.

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Issues with intellectual property and market access

The Shark Tank investor also discussed how American entrepreneurs are affected by Chinese manufacturing practices. He stated that once a US product becomes successful, it is often duplicated without the original research and development costs.

"That's the moment it gets knocked off in China because the Chinese never paid for any of the R&D."

These duplicate products, O’Leary said, are then sold in the US market. He explained that Chinese manufacturers "flood the US market with the knockoff," which can result in the elimination of "the original American company," along with the associated "American jobs."

O’Leary concluded that market access and enforcement of intellectual property rights should be central in future trade talks. He described these issues as part of a broader conversation about fair participation in the global economy.

"If you want to play with the big boys and the G7, it's got to be reciprocal," he said.

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