[Text/Observer Network Fan Wei] "On a humid spring day, the workers at a Christmas tree manufacturing factory in eastern China are methodically assembling branches, while applying imitation snow white paint to plastic pine needles and gently wiping away sweat."

This was the scene observed by an AFP journalist on April 11 at an export enterprise in Yiwu City, Zhejiang Province.

The tariff storm unleashed by the United States against China is bringing a new round of impact and challenges to Chinese exporters. However, after visiting "the world's small commodity capital" Yiwu, an AFP journalist found that despite pressure from American orders, Chinese manufacturers remain "highly motivated," dedicated to exploring other markets around the world.

April 11, Yiwu International Trade City, an owner prepares to leave work. AFP

"After a brief period of pessimism, we have become more united."

Recently, the U.S. government has imposed exorbitant tariffs on Chinese goods in succession. On April 10, the U.S. announced that the rate for "reciprocal tariffs" on Chinese imports would be raised to 125%, accumulating a total of 145% tariffs on China.

Jessica Guo (Jessica Guo), the manager of the Christmas tree manufacturing factory, told AFP, "Initially, there were some pessimistic sentiments within the industry."

"But over the past two days, we have become more united, meaning we feel that we can no longer be bullied like this. We are willing to weather this difficult phase together with the country," Jessica said.

In response to the unreasonable tariff pressure from the U.S., China continued its countermeasures on April 11, announcing a 125% tariff on all American imports, while stating that it would no longer engage in numerical games regarding tariffs.

AFP cited WTO data reporting that the "tit-for-tat policies" between China and the U.S. could result in an 80% reduction in bilateral trade in goods.

The report stated that the impact of the tariff war was already evident at this Christmas tree manufacturing factory — production lines had no American orders, either suspended or still unconfirmed.

However, according to Jessica, factory managers in Zhejiang typically have a broader customer base.

"Really, we haven't encountered many American clients over the past few years," she said as she walked briskly past walls stacked with boxes bearing addresses from Guatemala and Chile.

"We have gradually reduced our reliance on the American market and started to explore other markets," Jessica said.

"Let's see what Trump does next, he shouldn't act so crazy."

Fifty minutes' drive from the Christmas tree factory, there is a small factory specializing in solar-powered plastic products. Saleswoman Cassie said that currently, only 20% of her customers are Americans, far lower than the 80% before the pandemic.

Due to the U.S. tariffs, many of Cassie's orders from the U.S. were canceled or put on hold.

"At first, some American clients said we could share the burden of price increases, but later it became too outrageous — no one could afford it," Cassie said.

"We are now in a观望state, waiting to see what Trump will do next," Cassie added, saying that her factory might redirect some products to other domestic and international markets.

As workers sent colorful plastic components into the assembly line, every process was proceeding in an orderly manner.

Cassie showed AFP a finished Donald Trump doll destined for Europe, where the "little Trump" had one hand raised high and the other hand behind his back.

April 11, Yiwu, Zhejiang, a saleswoman named Cassie holds a Donald Trump figure at a factory specializing in solar-powered plastic products. AFP

"I think he shouldn't act so crazily. Imposing tariffs on us doesn't benefit them either," Cassie said.

"The escalation of the trade war requires us to view it with a steady attitude."

Under the shadow of U.S. tariff clouds, Yiwu, as "the world's small commodity capital," has drawn significant attention from the outside world.

According to Yiwu Customs data, the city's total import and export value reached 668.93 billion yuan in 2024, up 18.2% year-on-year. Of this, exports amounted to 588.96 billion yuan, up 17.7% year-on-year.

Notably, in 2024, Yiwu's imports and exports to Africa, Latin America, and ASEAN were 122.09 billion yuan, 111.67 billion yuan, and 64.05 billion yuan respectively, growing by 16.4%, 24.4%, and 26.2% respectively. Meanwhile, combined imports and exports with countries along the Belt and Road totaled 413.34 billion yuan, up 18.2%, accounting for 61.8% of Yiwu's total import and export value during the same period.

April 11, Yiwu, Zhejiang, a male employee works at a factory specializing in solar-powered plastic products. AFP

AFP emphasized that Yiwu International Trade City is the largest small commodity distribution center in the world, representing the peak of Zhejiang's light industrial strength. With tens of thousands of stalls standing side by side, millions of varieties of goods are sold here, covering various electronic products, body glitter, toy guns, and artificial grass.

Currently, Yiwu's small commodities have spread to over 200 countries and regions worldwide.

Most suppliers contacted by AFP in Yiwu said their customer base is very diverse, spanning South America, the Middle East, and Southeast Asia.

Besides vigorously expanding overseas markets, the broad domestic market buffer space is also the backbone of China's response to the U.S. trade war.

According to CCTV Finance reports, recently, the Ministry of Commerce organized discussions with relevant associations, large supermarkets, and circulation enterprises to study how to better leverage their respective strengths to help foreign trade enterprises broaden their domestic sales channels. At the same time, through the "integrated domestic and foreign trade" policy, foreign trade enterprises are helped to open up the domestic market. Under the call of the policy, some physical supermarkets are taking swift action.

On the 12th, the news that "Yiwu businesswomen boldly addressed American clients" topped the hot search list.

Nie Ziqin, head of a Halloween supplies category merchant and one of the "most outstanding businesswomen" selected by Yiwu Trade City, has about 50% of her business in the U.S. market, which has been affected to some extent by U.S. tariffs.

In an interview with Caixin, she said that she is currently transferring part of her orders to the EU market, and the focus going forward will be on producing a series of New Year products for the domestic market.

She believes that through expanding the EU market and shifting to domestic sales, success can also be achieved.

September 2024, Yiwu, Zhejiang, foreign merchants are selecting and placing orders at the communication equipment and small appliance foreign trade product area of the international trade city. Visual China

Huang Lina, head of a glassware sales company in Yiwu, also told the China Business Journal, "When we encounter problems, we just solve them; there’s no need to panic excessively. In fact, many countries along the 'Belt and Road' welcome Chinese companies to set up factories, which opens up more new development opportunities for us."

"If the trade war escalates, we should view it with a steady attitude," said veteran merchant Wang Xuxue (name translated) in a stall filled with guinea pig plush toys and Barbie doll bags in AFP's report.

"The Chinese people are very united," Wang Xuxue said. "(Chinese people) work harder and save more; we are not afraid of a price war, and we are all confident."

This article is an exclusive piece by Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7492474421769142803/

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