Latest news with #Yiwu
Free Malaysia Today
14-05-2025
- Business
- Free Malaysia Today
Tariff truce sparks hopes for Halloween orders in China
US President Donald Trump's tariffs on Chinese imports prompted waves of US customers to suspend or delay orders for festive decorations. (EPA Images pic) YIWU : A tariff truce between the US and China is helping kickstart the resumption of trade between the countries, but for manufacturers of Halloween decorations in the eastern Chinese city of Yiwu feelings are mixed. President Donald Trump's tariffs on Chinese imports, which reached 145% in April, prompted waves of US customers to suspend or delay orders for festive decorations, disrupting business for the likes of Lou Xiaobo, whose company Xubo relies on the US for 20% of sales. The 25-year-old, whose family has been making Halloween decorations in Yiwu for 28 years, warned they would have to scramble to produce and ship their hanging skeletons and costume props to America in time for the Oct 31 holiday. Customers are weighing up the cost of the new 30% tariff rate and although he is expecting orders, Lou is also warning customers his business cannot produce more complex made-to-order products in time. 'I don't think that because tariffs are lowered, we should be happy, because they have already delayed our production time,' he told Reuters from his family's store at Yiwu's sprawling wholesale market. 'In these two months we have lost (to tariffs), we can produce about ¥500,000 of goods, but now I only have ¥200,000…I'm not happy just because tariffs have been lowered,' he said. His comments point to how the damage has been done for many Chinese manufacturers that rely on the US market. While they say the truce has brought hope that orders will return, uncertainty still exists given the current 90-day time limit on lower tariffs and the Trump administration's unpredictability. China manufactures the majority of festive decorations the US buys, not just for Halloween but for other events such as the Fourth of July and Christmas. 'The tariffs were implemented at the utmost worst time for the Halloween manufacturer, as product was either finished and on a boat being held up, or in some stage of production that was halted,' said Robert Berman, a board member of the Halloween and Costume Association and the CEO of Imposta Costumes. 'China for many in the Halloween industry creates a one and done system,' he added. 'Yes, we can diversify and find new countries, but this will take years, and many of us are too far along to make any changes for 2025,' he said. Another exporter of Halloween masks, who only gave her surname as Ma, said she was hopeful that customers would now place orders, though she believes her overall exporting business turnover will be much lower than last year. 'If people order now, to ship it in June or July, it probably won't be too late, but if we don't have these in stock, which means they have to be made to order, we won't be able to get them in stock for Halloween,' she said. 'Anyway, I definitely hope they don't start up the trade war again!,' she added.
Free Malaysia Today
13-05-2025
- Business
- Free Malaysia Today
Chinese exporters to US tread warily as tariff uncertainties linger
The container shipping industry welcomed the agreement between Washington and Beijing, saying it expected the deal to boost bookings. (EPA Images pic) BEIJING : When she heard the news that Washington had slashed punitive tariffs on China for at least 90 days, Deng Jinling, manager of a Chinese company that exports thermos flasks to the US, popped open a bottle of champagne with her husband. While Deng celebrated the reprieve with bubbles, she worries about what might happen after 90 days, and has sent her 20-year-old daughter to the US to help scout for a warehouse there to mitigate risks and guard against any further fallout from tariffs. 'My biggest worry is Trump will forget tomorrow what he said today,' said Deng, manager of Lucky Bird Trade, based in the export manufacturing hub of Yiwu, the world's largest wholesale hub for small manufactured items, referring to US president Donald Trump. Chinese factories are heavily dependent on the US market, but manufacturers in China have buckled up, uncertain on how to navigate an increasingly unpredictable trade war that has threatened to upend global supply chains – and the uncertainty prevails despite the temporary truce. After talks with Chinese officials, the US said yesterday that the two sides had agreed to a 90-day pause under which Washington will cut tariffs on Chinese imports to 30% from 145% and Chinese duties on US imports will drop to 10% from 125%. While the news lifted global markets, the cheer has been tempered by caution among some manufacturers in China, given the uncertainty over what could happen after 90 days, with some still intent on scouring for opportunities overseas to hedge their bets. Christian Gassner, general manager of Limoss, a German manufacturer of control panels and remote devices based in the Chinese manufacturing hub of Dongguan, is in Malaysia seeking to expand operations for the US market with a partner there, and says he will continue to do so despite the tariff pause. 'Even with the 90-day pause, it feels more like someone just hit the snooze button on a fire alarm. 'Tariffs, politics, and policy mood swings don't exactly scream 'stable business environment',' he said. 'Sticking to one region these days is like building your house on a trampoline. 'For Limoss, the US is a top-three market, so crossing our fingers isn't a strategy – we need real options, real fast, before the next plot twist drops,' he added. Candice Li, marketing manager of a medical devices maker based in China's southern province of Guangdong, said her first reaction was suspicion and she wondered if the 30% tariff would soon translate to 60%. 'As the president of a country, he talks as easily as telling a joke, threatening his credibility,' Li said, referring to Trump. Her company had paused deals with US buyers for more than a month, but Li said she now expected clients to resume trade and pay the tariffs. With around 60% of orders coming from the US, her company had scaled back work hours and shifts after the tariffs were hiked to 145%. 'People from supporting departments only worked for half of the month, which is equal to a pay cut,' Li said. Year-end holidays in focus The timing of the truce is key for some Chinese manufacturers. The month of May is when US retailers traditionally make orders for year-end holidays such as Halloween, Thanksgiving and Christmas. Jessica Guo, who manages a Christmas tree factory in Jinhua in eastern China, said she was scrambling to get orders out. 'American clients are particularly anxious for us to ship the Christmas trees, but we can't produce them fast enough. 'We can only schedule orders until the end of August, but by then, the situation between the US and China is uncertain,' she said. Analysts said customers will take the 90-day window of opportunity to ship as many goods as possible into the US, although the outlook beyond that is uncertain. Yesterday, the container shipping industry welcomed the agreement between Washington and Beijing, saying it expected the deal to boost bookings. Some smaller exporters with businesses in emerging markets see opportunities in the US-China agreement. Eileen Xiong, sales director at Dongguan Vdette Information Tech Co, an air purifier manufacturer, said many Chinese exporters focusing on the US market had suspended deals over the past month amid the trade war and that had intensified competition in emerging markets where she operates, such as India, forcing her to lower prices. 'We are a small company … For big brands, they will not give up the US market. 'They started to put some energy into emerging markets or markets with lower prices. Now, with a better environment, they may focus their attention back to the US, leaving less pressure on us,' said Xiong.
Reuters
13-05-2025
- Business
- Reuters
Chinese exporters to US tread warily as tariff uncertainties linger
BEIJING/SHENZHEN, May 13 (Reuters) - When she heard the news that Washington had slashed punitive tariffs on China for at least 90 days, Deng Jinling, manager of a Chinese company that exports thermos flasks to the U.S., popped open a bottle of champagne with her husband. While Deng celebrated the reprieve with bubbles, she worries about what might happen after 90 days, and has sent her 20-year-old daughter to the U.S. to help scout for a warehouse there to mitigate risks and guard against any further fallout from tariffs. "My biggest worry is Trump will forget tomorrow what he said today," said Deng, manager of Lucky Bird Trade, based in the export manufacturing hub of Yiwu, the world's largest wholesale hub for small manufactured items, referring to U.S. President Donald Trump. Chinese factories are heavily dependent on the U.S. market, but manufacturers in China have buckled up, uncertain on how to navigate an increasingly unpredictable trade war that has threatened to upend global supply chains - and the uncertainty prevails despite the temporary truce. After talks with Chinese officials, the U.S. said on Monday the two sides had agreed to a 90-day pause under which Washington will cut tariffs on Chinese imports to 30% from 145% and Chinese duties on U.S. imports will drop to 10% from 125%. While the news lifted global markets, the cheer has been tempered by caution among some manufacturers in China, given the uncertainty over what could happen after 90 days, with some still intent on scouring for opportunities overseas to hedge their bets. Christian Gassner, General Manager of Limoss, a German manufacturer of control panels and remote devices based in the Chinese manufacturing hub of Dongguan, is in Malaysia seeking to expand operations for the U.S. market with a partner there, and says he will continue to do so despite the tariff pause. "Even with the 90-day pause, it feels more like someone just hit the snooze button on a fire alarm. Tariffs, politics, and policy mood swings don't exactly scream 'stable business environment'," he said. "Sticking to one region these days is like building your house on a trampoline. For Limoss, the U.S. is a top-three market, so crossing our fingers isn't a strategy - we need real options, real fast, before the next plot twist drops." Candice Li, marketing manager of a medical devices maker based in China's southern province of Guangdong, said her first reaction was suspicion and she wondered if the 30% tariff would soon translate to 60%. "As the president of a country, he talks as easily as telling a joke, threatening his credibility," Li said, referring to Trump. Her company had paused deals with U.S. buyers for more than a month, but Li said she now expected clients to resume trade and pay the tariffs. With around 60% of orders coming from the U.S., her company had scaled back work hours and shifts after the tariffs were hiked to 145%. 'People from supporting departments only worked for half of the month, which is equal to a pay cut,' Li said. The timing of the truce is key for some Chinese manufacturers. The month of May is when U.S. retailers traditionally make orders for year-end holidays such as Halloween, Thanksgiving and Christmas. Jessica Guo, who manages a Christmas tree factory in Jinhua in eastern China, said she was scrambling to get orders out. "American clients are particularly anxious for us to ship the Christmas trees, but we can't produce them fast enough. We can only schedule orders until the end of August, but by then, the situation between the U.S. and China is uncertain." Analysts said customers will take the 90-day window of opportunity to ship as many goods as possible into the United States, although the outlook beyond that is uncertain. On Monday, the container shipping industry welcomed the agreement between Washington and Beijing, saying it expected the deal to boost bookings. Some smaller exporters with businesses in emerging markets see opportunities in the U.S.-China agreement. Eileen Xiong, sales director at Dongguan Vdette Information Tech Co, an air purifier manufacturer, said many Chinese exporters focusing on the U.S. market had suspended deals over the past month amid the trade war and that had intensified competition in emerging markets where she operates, such as India, forcing her to lower prices. "We are a small company ... For big brands, they will not give up the U.S. market. They started to put some energy into emerging markets or markets with lower prices. Now, with a better environment, they may focus their attention back to the U.S., leaving less pressure on us," said Xiong.
Yahoo
13-05-2025
- Business
- Yahoo
Chinese exporters to US tread warily as tariff uncertainties linger
By Sophie Yu, David Kirton and Ellen Zhang BEIJING/SHENZHEN (Reuters) -When she heard the news that Washington had slashed punitive tariffs on China for at least 90 days, Deng Jinling, manager of a Chinese company that exports thermos flasks to the U.S., popped open a bottle of champagne with her husband. While Deng celebrated the reprieve with bubbles, she worries about what might happen after 90 days, and has sent her 20-year-old daughter to the U.S. to help scout for a warehouse there to mitigate risks and guard against any further fallout from tariffs. "My biggest worry is Trump will forget tomorrow what he said today," said Deng, manager of Lucky Bird Trade, based in the export manufacturing hub of Yiwu, the world's largest wholesale hub for small manufactured items, referring to U.S. President Donald Trump. Chinese factories are heavily dependent on the U.S. market, but manufacturers in China have buckled up, uncertain on how to navigate an increasingly unpredictable trade war that has threatened to upend global supply chains - and the uncertainty prevails despite the temporary truce. After talks with Chinese officials, the U.S. said on Monday the two sides had agreed to a 90-day pause under which Washington will cut tariffs on Chinese imports to 30% from 145% and Chinese duties on U.S. imports will drop to 10% from 125%. While the news lifted global markets, the cheer has been tempered by caution among some manufacturers in China, given the uncertainty over what could happen after 90 days, with some still intent on scouring for opportunities overseas to hedge their bets. Christian Gassner, General Manager of Limoss, a German manufacturer of control panels and remote devices based in the Chinese manufacturing hub of Dongguan, is in Malaysia seeking to expand operations for the U.S. market with a partner there, and says he will continue to do so despite the tariff pause. "Even with the 90-day pause, it feels more like someone just hit the snooze button on a fire alarm. Tariffs, politics, and policy mood swings don't exactly scream 'stable business environment'," he said. "Sticking to one region these days is like building your house on a trampoline. For Limoss, the U.S. is a top-three market, so crossing our fingers isn't a strategy - we need real options, real fast, before the next plot twist drops." Candice Li, marketing manager of a medical devices maker based in China's southern province of Guangdong, said her first reaction was suspicion and she wondered if the 30% tariff would soon translate to 60%. "As the president of a country, he talks as easily as telling a joke, threatening his credibility," Li said, referring to Trump. Her company had paused deals with U.S. buyers for more than a month, but Li said she now expected clients to resume trade and pay the tariffs. With around 60% of orders coming from the U.S., her company had scaled back work hours and shifts after the tariffs were hiked to 145%. 'People from supporting departments only worked for half of the month, which is equal to a pay cut,' Li said. YEAR-END HOLIDAYS IN FOCUS The timing of the truce is key for some Chinese manufacturers. The month of May is when U.S. retailers traditionally make orders for year-end holidays such as Halloween, Thanksgiving and Christmas. Jessica Guo, who manages a Christmas tree factory in Jinhua in eastern China, said she was scrambling to get orders out. "American clients are particularly anxious for us to ship the Christmas trees, but we can't produce them fast enough. We can only schedule orders until the end of August, but by then, the situation between the U.S. and China is uncertain." Analysts said customers will take the 90-day window of opportunity to ship as many goods as possible into the United States, although the outlook beyond that is uncertain. On Monday, the container shipping industry welcomed the agreement between Washington and Beijing, saying it expected the deal to boost bookings. Some smaller exporters with businesses in emerging markets see opportunities in the U.S.-China agreement. Eileen Xiong, sales director at Dongguan Vdette Information Tech Co, an air purifier manufacturer, said many Chinese exporters focusing on the U.S. market had suspended deals over the past month amid the trade war and that had intensified competition in emerging markets where she operates, such as India, forcing her to lower prices. "We are a small company ... For big brands, they will not give up the U.S. market. They started to put some energy into emerging markets or markets with lower prices. Now, with a better environment, they may focus their attention back to the U.S., leaving less pressure on us," said Xiong. (Reporting By Sophie Yu, Ellen Zhang and Liangping Gao in Beijing; David Kirton in Shenzhen; Writing by Anne Marie Roantree; Editing by Muralikumar Anantharaman) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
11-05-2025
- Business
- Daily Mail
Inside eerie 'Chinese Lapland' where army of workers produce 80% of the world's Christmas decorations with mountain of stock piled floor to ceiling in 'never-ending nightmare' grotto
Deep in eastern China, behind factory gates and beneath flickering fluorescent lights, tens of thousands of workers toil endlessly in a city you've probably never heard of, yet one responsible for nearly every bauble, tinsel strand, plastic tree, and inflatable Santa on your high street. Yiwu, with its population of 1.2million, churns out a staggering 80 per cent of the world's Christmas decorations which are sold at the city's sprawling market complex - the largest wholesale hub on Earth, where entire districts are dedicated solely to the winter holiday. In 2014, journalist Tim Maughan visited the huge market and recalled: 'All I hear is festive music. I'm trapped in my worst Christmas nightmare, and it is only August. A hot, sticky day in August. For a moment, it feels like I may never escape, doomed to spend the rest of my life in a never-ending Santa's Grotto'. And with over 600 factories operating around the clock, Yiwu has earned its moniker as the 'Chinese Lapland,' supplying everything from glittering baubles to miniature Santas to households worldwide. But the factory workers - many of them internal migrants - endure punishing 12-to-16-hour shifts, often seven days a week, in order to meet the crushing seasonal demand. The work is often monotonous and physically taxing, with some workers painting hundreds of ornaments daily for modest wages of a maximum of £130 to £190 a month, even though the market sold an estimated £52billion worth of goods in 2022 alone. The sounds of their labour ring out across the factory walls as thousands of ornaments, garments and novelties pile up on the ground or fill containers. The air is thick with fumes, the smell of chemicals and glue and warm melted-down plastic. Work in the factories is repetitive, and often dangerous, as staff must constantly reach inside large machinery including presses. Many of the festive products can be traced back to Yiwu International Trade City, which opened in November 1982. Here, everything from glitter-covered reindeer to pink artificial trees are made, displayed, and shipped off to the West, where they deck the halls of homes from Manchester to Milwaukee. Yiwu, with its population of 1.2million, churns out a staggering 80 per cent of the world's Christmas decorations Entire corridors in the mega market are bathed in red and green lighting, and rows of faceless mannequins model elf and Santa costumes Spanning over five million square metres, the equivalent of roughly 750 football fields, and housing more than 75,000 stalls, the mega market offers an overwhelming array of Christmas-themed goods. Walking through the labyrinthine is akin to stepping into a Christmas bazaar. The five floors are a maze of endless tinsel, LED snowflakes, robotic elves, and animatronic reindeer heads. Entire corridors are bathed in red and green lighting, and rows of faceless mannequins model elf and Santa costumes. The narrow aisles are filled with the cacophony of piano-playing musical Santas and jingle bells but behind the festive façade lies a workforce toiling under demanding conditions. On the factory floors, workers of all ages and genders - but predominately young women - toil away as they assemble and paint plastic mistletoe, wreaths, miniature trees and more. But it turns out, they are not entirely sure what Christmas is. 'Maybe it's like [Chinese] New Year for foreigners,' said 19-year-old Wei, a worker who came to Yiwu from rural Guizhou province in 2014, speaking to Chinese news agency Sina. Together with his father, he works long days in the red-splattered lair, taking polystyrene snowflakes, dipping them in a bath of glue, then putting them in a powder-coating machine until they turn red – and making 5,000 of the items every day. In the process, the pair become dusted in crimson powder. They wear Santa hats they have made to stop their hair from turning red and get through at least 10 face masks a day. In a BBC feature on the massive workforce, one woman was seen folding ribbons from plastic sheeting, while another woman next to her glued them on to 'Merry Christmas' signs covered in red glitter paint. A young boy in a dirty apron who appeared to be barely a teenager was spotted hand-painting holly berries red. And in a side room, a man sat in front of a huge fan dipped metal wires into a bucket of unidentified boiling liquid and bent them into curved headbands while they were hot. But despite the grueling work, these laborers remain largely disconnected from the holiday spirit they help propagate. For many, Christmas is a foreign concept and the decorations they produce hold little personal significance. Inside some workshops, lines of workers sit in silence, manually painting eyes onto tiny Santas or spraying fake snow onto pinecones. The repetition is hypnotic - and more than a little eerie. Last Christmas, one vendor, Chen Xilin, showcased a box of multicoloured baubles, each meticulously painted by hand to an Irish Times reporter. Some stalls within the market complex are dedicated to tinsel 'They're painted by hand, each ball,' he noted, highlighting the labor-intensive process that underpins the city's massive production scale. Chen's family business is among the many that contribute to Yiwu's dominance in the Christmas decoration industry. But the city's obsession with Western holidays doesn't end there. Many stalls are now branching out into Halloween and Valentine's Day. Skeletons and bleeding zombie Santas stand side-by-side with cherubs and blinking candy canes - a mash-up of holidays in a place that celebrates none of them. Yiwu's dominance in the Christmas decoration market has not shielded it from global economic shifts, however. Recent trade tensions, particularly the imposition of tariffs by the US, have disrupted the city's export dynamics. Vendors report a decline in American orders, prompting some to explore alternative markets in the Middle East, Africa, and Southeast Asia. Additionally, rising costs of raw materials and energy have compelled manufacturers to adjust prices, potentially impacting global consumers. Despite these challenges, Yiwu continues to adapt, with some factories embracing sustainable practices, such as using recycled materials and energy-efficient production methods. Miniature Santa dolls fill the shelves of a stall in the massive Yiwu market Yiwu's transformation from a modest town to a global manufacturing powerhouse is a testament to its entrepreneurial spirit. The city's economy is heavily reliant on manufacturing and trade, with the Christmas decoration industry playing a pivotal role. As global demand for festive goods persists, Yiwu remains at the forefront, illuminating homes worldwide with its products. While the city may lack the snowy landscapes of the North Pole, its contribution to the global celebration of Christmas is undeniable.
