It's Japanese, I promise. I speak it, and hear chinese at work all day, I know the difference :) Plus, the writing on the screen is Japanese, as Chinese doesn't use the Hiragana or Katakana.

All the comments are correct. The video initially linked here turned out to be Chinese, but this link has gone down some time ago now. As an alternative I have found links to a Japanese video with the same trick. Hope this explains the confusion ;-)

GUYS!! SHOULDINT WE FIND OUT HOW TO DO THE TRICK? KEEP WATCEN IT TILL U SEE HOW K?

It's very simple, actually. I don't know or speak Chinese or Japanese and I figured it out.

Select a portion of the shirt in the MIDDLE (it shows about 1/3rd, but this does not fold into the perfect crease, like she ends up with... the glitch clearly shows that she had to restart the fold with a higher (closer to the middle of the shirt) portion of the shirt. The right hand goes parallel to the left, all the way to the shoulder. This is where your first portion of the "trick" is done. It is important to place your hands parallel to eachother, but also the right distance from the side EDGE of the shirt. After selecting the correct positioning, you pinch both portions of the shirt. Pulling your right hand over your left and grabbing the bottom of the shirt at a parallel to the left hand (which is now in the middle of the half fold). Keeping the left hand securely pinched on the shirt, pull the middle of the shirt out. This in effect folds the shirt in half, placing a few inches of the side of the shirt inside the fold. When you lay the shirt front down (chest logo down) and fold it back, it tucks the second side/sleeve into the fold.

The only REAL difficult part of this is finding the RIGHT place to start... If you don't, you'll have more of one shirt shoulder showing than the other, which makes it look really bad. If the left side of the shirt shoulder is too large, start again and pick a parallel line that is CLOSER to the neck of the shirt. Remember though: making a simple change on the left side of the shirt when starting will double the effect on the fold... i.e. an inch change towards the collar on the left when beginning will create an inch change away from the collar on the right.

Salut, and Happy New Year!
Akuta

Hi I've seen the video in two forms... one with the t-shirt and tank top and one without the tank top... does anyone know if there are even more how to fold things out there because that would be SWEET!

This method is now being "promoted" by Martha Stewart on her television show and in a video clip on her website http://www.marthastewart.com ! I much prefer the clip on your site!