Latest news with #YiwuInternationalTradeMarket
Borneo Post
28-05-2025
- Business
- Borneo Post
China's ‘world's supermarket' eyes thriving prospects amid trade uncertainties
Foreigners carry a suitcase for sample purchasing at Yiwu International Trade Market in Yiwu on May 16, 2025. – Xinhua photo YIWU (May 29): Despite global tariff headwinds, east China's Yiwu, a renowned global trading hub known as the 'world's supermarket', stays bustling as usual. Colourful toys, sleek electronics and intricate handicrafts continue to roll off assembly lines here, exhibiting the rhythm of global commerce that refuses to skip a beat. In the first quarter of this year, Yiwu's total import and export value reached 167.45 billion yuan (about US$23 billion), an increase of 13 per cent year on year, while exports climbed 14.5 per cent to 147.27 billion yuan. Merchants in the city have shown strong resilience and expressed confidence in long-term prospects, citing diversified markets, agile supply chain adaptations and proactive risk mitigation strategies. Strong resilience Home to around 18,000 resident foreign merchants, Yiwu serves as a vital link, connecting more than 2.1 million Chinese enterprises with over 230 countries and regions worldwide. It is often seen as a barometer of global consumer demand. The Yiwu International Trade Market attracts an average of 220,000 visitors per day. For many Yiwu merchants, a diversified market has been the cornerstone of their resilience, allowing them to navigate the tariff tempest with strategic agility. 'US (United States) tariff policies have limited impact on us, and our sales are stable,' said Zhang Cuiyan, general manager of Ningbo Guanjiang Tools Co Ltd which produces a wide range of hardware tools such as wrenches. With about 20 years of experience, the company exports to over 100 countries and regions, she said, adding that demand from their existing clients remains strong. Meanwhile, some businesses that have traditionally relied on the US market had already begun making adjustments before the raised tariffs. Huahong Art Home Shares Co Ltd is one of the Yiwu-based firms actively exploring new markets outside the US, which has long been a major export destination for its artware. Since last year, the company has been expanding into markets in Southeast Asia, Latin America and Africa. 'We're confident and assured about the road ahead,' said Helen Wang, the company's general manager, who is also setting her sights on China's vast domestic market. 'We have added new product categories to ensure that domestic orders keep growing,' she said, noting that a stronger focus on the domestic market is one of their solutions in response to possible tariff challenges. The company currently employs around 200 designers to push for innovation and move the company up the value chain. It has recently established a gift production unit, leveraging its expertise in artware manufacturing to tap further into the domestic consumer market. Wang also revealed plans for a multi-functional lifestyle space that blends coffee, tea, flowers, baking, aromatherapy, pottery and decorative art, a concept growing in popularity among young consumers in China. Cautious but confident Many Yiwu merchants welcomed the results of a recent China-US high-level meeting on bilateral tariffs, although they remain cautious about a full rebound in exports to the US. Glasses manufacturer Chen Haihong received messages from her American clients to resume the canceled orders, right after the joint announcement of tariff modification. She said the company plans to continue expanding in the US market while diversifying its product range, exploring opportunities in other countries, and growing through both online and offline channels. 'Yiwu should strengthen itself and develop a long-term vision,' said Li Qian, professor with the International Business School of Beijing Foreign Studies University. She suggests Yiwu continue to explore emerging markets, accelerate digital transformation and invest heavily in cross-border e-commerce. Helen Wang from Huahong Art Home Shares expressed optimism that Chinese businesses will adapt. 'The spirit of Yiwu is about a fearless attitude toward hardship, a keen sense of market trends and rapid response, and the agility to adapt and transform with speed,' said Wang, a Yiwu native who has built up her business with her family from scratch, like many other merchants here. 'I think businesses in Yiwu will continue to grow, and the prospects of Yiwu will remain buoyant,' she added. – Xinhua China world's supermarket Xinhua Yiwu
The Star
09-05-2025
- Business
- The Star
China's manufacturing prowess makes Yiwu mecca for buyers
HANGZHOU: In a compact shop no larger than 10 square meters, Tao Yang, a vendor in Yiwu — a city in Zhejiang province known as "the world's supermarket" — keeps a well-used world atlas on her desk. "I ask my customers to sign their names over their home countries," she says, adding that she has collected signatures from clients in 20 countries. "Our doors are always open to the whole world." Despite the US government's recent tariff increases on imports from China and other trade partners, business remains brisk at the Yiwu International Trade Market. In the first quarter of this year, Yiwu's total import and export value reached 167.45 billion yuan ($23 billion), an increase of 13 percent year-on-year, with trade links spanning over 230 countries and regions. Among this, exports amounted to 147.27 billion yuan, up by 14.5 percent year-on-year. Tao is working with a US client on new designs. In early April, her guest from the United States arrived in Yiwu as scheduled. "The US government's successive imposition of tariffs has caught my client off guard, but he still resolutely came to China to discuss new product development and orders face-to-face with me," Tao told Xinhua. Despite feeling a bit jet-lagged, he made his way to the market the very next day, promptly placed an order for a batch of diamond-studded car cups and got to work on crafting the diamond-encrusted accessories. Tao delivered 35 new samples in just six days. "Yiwu's efficiency and supply chain keep us competitive," she said. According to Tao, what attracts the US client to Yiwu is not just the products. At its core, he is choosing Chinese manufacturing for its ability to swiftly launch new items, maintain a stable supply chain, and offer competitive pricing. Having been in the trade for over 40 years, Tao's client, who is now 69 years old, has seen disputes and market ups and downs throughout his career. "We all believe that business and progress won't be stopped by unexpected events," she said. Of Yiwu's 75,000 merchants, around 3,000 are involved in US-related trade, and only about 100 merchants like Tao conduct direct business with US buyers. To navigate the challenges posed by tariff escalation, many merchants are adapting by innovating their products, streamlining production, and expanding into both domestic and global markets. Zeng Hao, a supplier of 3D-printed toys, believes the emerging product category is unlikely to be replaced in the near future. At his factory, more than 3,000 machines are running at full capacity, producing over 100,000 pieces each day. Zeng noted that if the toys were to be produced in the United States, the costs would double. He said he is seeing rising orders from South America, Southeast Asia and Russia, and aims to boost domestic sales to 30 percent by the end of the year. Christmas decor merchant Jiang Jiangping's business has entered the peak season. With an eye-catching range of nearly 2,000 Christmas products, he is not too concerned about US tariffs, as the US market accounts for less than 3 percent of his sales. Meanwhile, orders from Europe and other regions have steadily increased in recent years. "Our sales revenue has maintained double-digit growth in the past two years. Orders for this year's Christmas products have already been scheduled through the end of June," said Jiang. "Recently, we've been rushing to fulfill orders from the Middle East," said Sun Lijuan, a doll toy merchant. Sun's company has developed Arabic-speaking smart dolls for the Middle East market, and has seen a 10-percent increase in order volume from the Middle East compared to the same period last year. "The business in Yiwu is truly global," said Sun. In recent years, the local government in Yiwu is also actively driving the globalization of trade. Leveraging AI tools, merchants in Yiwu can produce promotional videos in 36 languages to showcase their products worldwide. The "Brand Globalization" program, launched in 2023, has already been introduced to over 20 countries and regions, helping more than 5,000 businesses tap into overseas markets. Additionally, Yiwu's logistics network is constantly being enhanced. Just days ago, a train loaded with 100 standard containers of export goods, including home appliances, hardware machinery, and decorative materials, departed from Yiwu and headed for Kashgar, Xinjiang. This marked the launch of the first intermodal rail-road freight train from the Yangtze River Delta region. The cargo will then be transferred by truck in Kashgar and ultimately delivered to Tashkent, capital of Uzbekistan. Railway data show that in 2024, Yiwu saw a total of 1,300 China-Europe train trips, transporting over 140,000 standard containers of goods, registering a year-on-year growth exceeding 10 percent. Pan Yigang, deputy director of the Zhejiang Provincial Development and Planning Institute, noted that by capitalizing on its strategic position along the Belt and Road, the Yiwu International Trade Market has developed a trade network that spans emerging markets in Asia, Africa, the Middle East, Southeast Asia, and Latin America. This trade network is defined by its diverse customer base and robust resilience to risks associated with single market. Data show that Yiwu's 2024 trade with Belt and Road partner countries surged 18.2 percent year-on-year to 413.3 billion yuan, making up 61.8 percent of the city's total imports and exports. At 8:30 am, Fu Jiangyan and dozens of fellow merchants gathered at the language center for Arabic lessons, a new initiative introduced at the Yiwu International Trade Market. Spanish classes will also be introduced in the near future. "Speaking our clients' languages helps build trust and opens up new market opportunities," said Fu, a sock merchant focused on the Middle East and Africa. - China Daily/ANN
Yahoo
07-05-2025
- Business
- Yahoo
Trump talks tough on China, but early focus elsewhere
A vendor closes her shop with a face mask of US President Donald Trump at the Yiwu International Trade Market in China on April 11, 2025 (ADEK BERRY) (ADEK BERRY/AFP/AFP) Voicing frustration over the lack of success in ending Russia's invasion of Ukraine, US Secretary of State Marco Rubio called for renewed focus on "our number-one geopolitical foe" -- China. "Not that a war in Ukraine is not important, but I would say what's happening with China is more important in the long term for the future of the world," Rubio told Fox News host Sean Hannity. President Donald Trump's inner circle has long spoken of China as the arch-enemy, with some suggesting that ending the Ukraine war will free up resources to counter Beijing -- especially if it seeks to move on Taiwan. Yet more than 100 days into Trump's term, observers also notice a surprising lack of attention on China. Trump has hit China hard with tariffs, but otherwise, there has been little by way of articulated strategy. Rubio, who in his Senate confirmation hearing warned that China could affect "virtually everything that matters to us in life" within a decade, has yet to visit East Asia, focusing attention on Trump's priority of deporting mostly Latin American migrants as well as to diplomacy on Ukraine. "I think that the White House thought that they'd be in a different place with China now than where they are," said Wendy Cutler, a former top US trade negotiator who is now vice president at the Asia Society Policy Institute. Trump's tariff war "escalated so quickly that it's hard to unwind now," she said. China, she said, is "playing a longer game" with President Xi Jinping rallying the population by blaming the United States for economic pain. - Faith in Xi ties - Trump is surrounded by reputed hawks such as Rubio, who is now also interim national security advisor, but Trump himself is transactional and appears "enamored with Xi Jinping," Cutler said. "He thinks that they get along well, and that if it's leader to leader, they can figure out this relationship and put it back on track," she said. The United States and China plan their first formal trade talks this week in Switzerland, over a month after Trump unveiled his sweeping levies. Trump, who has vowed to remake the global economic system, has slapped 145 percent tariffs on products from China, which has responded with 125 duties on imports from the United States. "Their economy is suffering greatly because they're not doing trade with the US," Trump told reporters Tuesday. - 'Nuanced'? - Trump has shown himself to be far more radical than in his first term on a host of issues. But he has shown signs of pragmatism on China, despite heated rhetoric against Beijing on the campaign trail. David Perdue, a former senator and Trump's pick for ambassador to Beijing, wrote about China during the campaign that "America is at war" -- but in his confirmation hearing said that the US approach should be "nuanced, non-partisan and strategic." Former president Joe Biden's administration also identified China as the top rival but sought to work together on targeted areas, such as fighting climate change and curbing fentanyl. Yet the Biden administration also pursued a broader regional strategy of facing down China through alliances. It began a shift of US forces in southern Japan and northern Philippines -- within proximity of Taiwan -- and pursued coalitions to reject the use of Chinese high-technology. Trump has derided allies, especially in Europe, as freeloaders, and has hit even US friends with tariffs, although he relented at least temporarily on higher rates. China has quickly reached out to Japan and South Korea, among the closest US allies, to explore a free-trade deal. "By undercutting core US alliances and partnerships across Europe and Asia, he is reducing the leverage that the United States can bring to bear vis-a-vis China," said Ali Wyne, who follows China for the International Crisis Group. He also questioned how the tariff war fit into a considered strategy on China, which now has an incentive to double down on achieving greater self-sufficiency and has been able to project itself as "a more stabilizing geopolitical force than the world's preeminent power." "Despite his alleged friendship with Xi and his stated desire for the United States and China to collaborate more robustly, he has created a trade impasse from which neither leader has an easy face-saving off-ramp," Wyne said. sct-lb/md/des
The Star
06-05-2025
- Business
- The Star
World's biggest small-commodities market unfazed by US tariffs
While the United States' unwarranted imposition of tariffs has strained the nerves of traders around the globe, merchants in Yiwu, Zhejiang province, are confident their exploration of diversified export markets over the years will shield them from any heavy impact. Known for its "small profits, quick turnover" model, Yiwu International Trade Market is renowned as the world capital of small commodities. The market consists of five districts housing 75,000 stores, with over 3,000 of those exporting merchandise to the US. Yiwu Yexin Electronics began operating in the market in 2010 and currently has four stores across the districts. Company sales manager Mao Yeqiang said like many operators in the market, they follow a "store in the front, factory in the back" model and mainly export wearable products such as headphones and smartwatches to Europe, Southeast Asia and South America. This year, Southeast Asia will account for 60 percent of their exports, and Europe about 30 percent. "US orders were normal last year, but this year they've nearly vanished, dropping from 10 percent to far less," Mao said. Although they had plenty of orders early this year, April has been noticeably quieter compared with previous years. A direct impact of the tariff war has been the sharp decrease in order volumes, he said. Bulk orders of thousands, or tens of thousands, of units have dropped to just dozens. Mao said the drop in volume is due to several factors. "The overseas supply chain for these products is nearly saturated," he said. "After COVID restrictions were lifted demand exceeded supply, but now it's the opposite. Plus, due to economic uncertainties and exchange rate fluctuations brought by the tariff war, foreign buyers are more price-sensitive and prefer placing smaller orders." To adapt to changes in the trade landscape and the US tariffs, Mao said Yexin Electronics is shifting from a business-to-business model to a business-to-customer one. "We used to be an OEM (original equipment manufacturer), but now we're building our own brand with unique product features," he said. "We're also exploring other markets like Russia and South America, and considering domestic sales. Local sales require changes in packaging and compliance with domestic standards, making overseas markets comparatively easier to navigate," Mao said. During the interview with China Daily, Ecuadorian importer Marlon Duche and his team were at Yexin Electronics asking about the prices of travel chargers. Yexin was the first store Duche visited on his Yiwu trip, but he said he would compare prices at other outlets. When asked about the impact of the tariff war initiated by the Trump administration, Duche said, "We're from Latin America, so the tariffs don't impact us at all." Opportunity from crisis The shelves at Yiwu Lincy Lock Industry Co are filled with traditional and modern smart locks. Founded in 2012 by general manager Lin Xiaoming, Lincy now exports over 50,000 locks daily, and is experiencing double-digit annual growth in production and market share. In the past, two of its traditional locks were very popular in the US, with monthly exports of 300,000 units each. But following the US tariff announcement, the import cost for US buyers has jumped to 165 percent, prompting a halt in exports. "We've essentially stopped trading with the US," Lin said. "The US used to account for 30 percent of our exports. Over the past few years, this has dropped to under 1 percent. Fingerprint-activated lock exports to the US have also dwindled due to their complex import requirements and order uncertainties." Despite the drop in exports to the US, Lin is unfazed by the situation. "We are not fixated on the United States," he said. "This is just a temporary minor difficulty, which we will rely on transformation (of markets) to overcome. If everyone ignores the United States, and all of Chinese manufacturing ignores the United States, what can the United States do? " Africa and the Middle East now make up 60 to 70 percent of Lincy's exports, Lin said. "In many African and Middle Eastern countries, our brand recognition is high — market share ranges from 50 percent to 90 percent," he said. "Word of mouth keeps us going. The US is just a small market for us, we can grow bigger in other regions such as Belt and Road countries and regions." Lin recently returned from Kazakhstan and Uzbekistan, where he joined a Jinhua city business delegation seeking to deepen economic cooperation. Inspired by the trip, he plans to develop lock models tailored to local preferences. He has already designed three new models for the Central Asian market. "I hope to deepen and slowly cultivate this market," he said. "Crises can reveal opportunities. The tariff war has forced us to abandon the US market, but it gives us more energy to expand elsewhere — especially in Africa, the Middle East, and Belt and Road countries. The world is vast, and if you understand your customers, the market opens up. Even if we stop selling to the US, there are countless other markets to grow into." BRI benefits In 2024, Yiwu's total import and export trade with Belt and Road partners reached 413.34 billion yuan ($56.62 billion), up 18.2 percent year-on-year, accounting for 61.8 percent of the city's total trade, and making it a key growth driver, official data shows. Chen Fangfang, chairwoman of Hui-Gang Import & Export Co, also joined the business delegation to Central Asia. Her textile company specializes in bedding and carpets, with a daily output of 40,000 to 50,000 blankets. Chen has been in the industry for 25 years and joined Yiwu International Trade Market in 2011. "Our foreign trade started with South America. Now our main markets are South America, the Middle East, and some of Europe," she said. "The US accounts for about 20 percent of our business. But this year, American clients halted orders due to high tariffs. Even European clients are holding back due to the poor economic climate." Despite challenges from the US and Europe, Chen said South America, the Middle East, and Africa remain stable. "The tariff war has affected us, but not our survival. Seventy percent of our business comes from other countries. We've never focused on just one country — we develop multiple markets and go on international visits every year," Chen said. She said the first step is research and development, starting with the raw yarn "so we control the supply chain". The second step is to gain market advantages through innovation. Finally, the company has the benefit of 25 years' experience in the field, Chen said. "We tell our team to stay grounded and build strength internally, attracting quality clients through innovation, not desperation. Sustainable growth requires both quality and quantity," Chen said confidently. Wu Xiaoming, chairman of Yiwu Aokay Sports Goods Co, which makes basketballs, footballs, and volleyballs, began diversifying the company's markets following the 2008 global financial crisis. Average annual company sales total 30 to 40 million yuan, with 50 percent to South America, 20 percent to Western Europe, and the remainder to Africa, Southeast Asia, and Eastern Europe. US exports dropped from 2 percent last year to zero this year, Wu said. "The US market has high barriers, and mature supply chains, which make it hard to break into. We still have a leftover Walmart order of over 30,000 balls from last year, but due to shipment delays and increased tariffs, it's uncertain whether we'll complete it," Wu said. Nonetheless, he said the US tariffs had disrupted global trade. "Some of our old South American clients are hesitant to place orders now due to exchange rate volatility," Wu said. The company has also initiated brand differentiation. Aokay is the high-end line, Meik is geared for schools and the general public, and Ruimeng (RM) is its budget label. "We used to focus on OEM, but now we're prioritizing brand development," Wu said. Disruption minimal Zhejiang Yinyuan Optical Instruments Co makes optical products like binoculars, scopes, and night-vision gear, with an annual output value of around 80 million yuan. Exports to the US account for 40 million to 50 million yuan of its output. Their outlet in Yiwu market sees less than 5 percent of its exports go to the US, but their sales through Amazon are mostly US-bound. "Through traditional channels, importers handle customs, so we're not directly impacted," general sales manager Chen Jiajia said. "But higher tariffs mean higher shipping costs, which push up prices. In e-commerce, the effect is delayed, but if tariffs stay high, orders will likely decline." She said if the tariff war continues, the company will absorb some cost increases and raise prices when needed. "Ultimately, US consumers will pay more. It's not beneficial for them," Chen said. She recently went to a Hong Kong trade fair and said almost no US clients attended. "Since COVID, the US economy has been declining year by year," she said. "When we participated in exhibitions this year, we didn't consider the US and went to Russia or other places. We're now targeting South America, which is showing great potential." Wu Guangyao, general manager of Wokali (Zhejiang) Biotechnology Co, runs a cosmetics business that joined the market in company exports shampoo and other personal care products to nearly 200 countries. US buyers account for less than 10 percent of their exports, but the tariffs have already had a noticeable impact. "We import raw materials like witch hazel extract and carbomer (a synthetic polymer) from the US, and prices have doubled … but they are even more after suppliers raised prices," Wu said. Wokali began storing up on US raw materials a month before the tariffs hit — enough for a full quarter of production. But storage limitations, like temperature requirements, prevent them from stockpiling for a full year. "Our bottleneck is raw materials — we can't change formulations overnight. Some R&D can take three to five years. We're now seeking alternative suppliers from other countries," Wu said. However, an upside is the brand is well-known in many countries. "Though the US market is affected, global exports remain stable. If we lose the US, we can make up for it with growth elsewhere," Wu said. Walking through Yiwu International Trade Market, foreign buyers are everywhere, merchants have their doors open, and business is bustling. Although some US clients are hesitant, most Yiwu merchants believe tariffs have not caused significant disruption. Expanding markets, improving quality, building brands, and continuous innovation were common themes expressed by many traders. In the face of uncertainty in global trade, Yiwu's merchants are embracing long-term thinking and steady progress. - China Daily/ANN
RNZ News
21-04-2025
- Business
- RNZ News
China warns countries against striking trade deals with US at its expense
By Liz Lee and Laurie Chen , Reuters A shop owner holding a toy of US President Donald Trump at the Yiwu International Trade Market in Yiwu, China's eastern Zhejiang province. Photo: ADEK BERRY / AFP China on Monday accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the United States at its expense, ratcheting up its rhetoric in a spiralling trade war between the world's two biggest economies. Beijing will firmly oppose any party striking a deal at China's expense and "will take countermeasures in a resolute and reciprocal manner," its Commerce Ministry said. The ministry was responding to a Bloomberg report, citing sources familiar with the matter, that the Trump administration was preparing to pressure nations seeking tariff reductions or exemptions from the US to curb trade with China, including imposing monetary sanctions. President Donald Trump paused the sweeping tariffs he announced on dozens of countries on April 2 except those on China, singling out the world's second largest economy for the biggest levies. In a series of moves, Washington has raised tariffs on Chinese imports to 145 percent, prompting Beijing to slap retaliatory duties of 125 percent on US goods. Last week, China signalled that its own across-the-board rates would not rise further. "The United States has abused tariffs on all trading partners under the banner of so-called 'equivalence', while also forcing all parties to start so-called 'reciprocal tariffs' negotiations with them," the ministry spokesperson said. China was determined and capable of safeguarding its own rights and interests, and was willing to strengthen solidarity with all parties, the ministry said. "The fact is, nobody wants to pick a side," partner at China-based policy consultancy Plenum Bo Zhengyuan said. "If countries have high reliance on China in terms of investment, industrial infrastructure, technology know-how and consumption, I don't think they'll be buying into US demands. Many Southeast Asian countries belong to this category." Pursuing a hardline stance, Beijing will this week convene an informal United Nations Security Council meeting to accuse Washington of bullying and "casting a shadow over the global efforts for peace and development" by weaponising tariffs. Earlier this month, US trade representative Jamieson Greer said nearly 50 countries had approached him to discuss the steep additional tariffs imposed by President Donald Trump. Several bilateral talks on tariffs had taken place since, with Japan considering raising soybean and rice imports as part of its talks with the US, while Indonesia was planning to increase US food and commodities imports and reduce orders from other nations. China's President Xi Jinping and US President Donald Trump. Photo: AFP Trump's tariff policies have rattled financial markets as investors fear a severe disruption in world trade could tip the global economy into recession. On Monday, Chinese stocks inched higher, showing little reaction to the commerce ministry comments, though investors have generally remained cautious on Chinese assets due to the rising growth risks. The Trump administration has also been trying to curb Beijing's progress in developing advanced semiconductor chips, which it said could be used for military purposes, and last week imposed port fees on China-built vessels to limit China's dominance in shipbuilding. AI chip giant Nvidia said last week it would take NZ$9.1 billion in charges due to the administration's curbs on AI chip exports. China's President Xi Jinping visited three Southeast Asian countries last week in a move to bolster regional ties, calling on trade partners to oppose unilateral bullying. Beijing has said it was "tearing down walls" and expanding its circle of trading partners amid the trade row. The stakes are high for Southeast Asian nations caught in the crossfire of the Sino-US tariff war, particularly given the regional ASEAN bloc's huge two-way trade with both China and the United States. ASEAN was China's largest trading partner, with total trade value reaching NZ$390 billion in the first quarter of 2025 and accounting for over 16 percent of China's overall foreign trade, China's customs agency said last week. Trade between ASEAN and the US totalled around NZ$793 billion in 2024, according to US figures, making Washington the regional bloc's fourth-largest trading partner. "There are no winners in trade wars and tariff wars," Xi said in an article published in Vietnamese media, without mentioning the United States. - Reuters
