In the gloom of China’s economy, one area of business is booming: cosmetics.
After enduring nearly three years of mandatory masks and frequent lockdowns during the pandemic, many Chinese consumers, wary of big-ticket purchases like apartments, are now splurging on lipstick, perfume, moisturizers and other personal care products.
But cosmetics companies from France, Japan, South Korea and the United States, which have invested heavily in China, are missing out on a lot of the action.
As China’s cosmetics companies are booming, imports of cosmetics are wilting under regulations that the country imposed on foreign manufacturers during the pandemic.
While China’s trade conflicts with the West over semiconductors pivot on national security and technological innovation, the dispute over cosmetics is largely about money.
Locations:
France, Japan, South Korea, United States, China