Comprehensive reports from China Youth Daily and Chaonews indicate that just 10 days after the U.S. tariff was imposed, American clients returned to place orders with Chinese factories. Xiong Weiping, a factory manager from Zhejiang's foreign trade industry, reported that his orders from the U.S. had not decreased but instead increased.
(Image source: video screenshot)
It is reported that Xiong Weiping is an exporter of custom sunrooms based in Zhejiang province. His sales exceeded 100 million RMB in 2024, with 60% of orders coming from the U.S., around 25% from Europe, and the remainder from Australia and the Middle East.
In 2021, Xiong Weiping joined Alibaba International Station to start his foreign trade business, targeting the U.S. market as his first overseas market. "Americans have more space than people in other countries, and they enjoy outdoor activities a lot. A gazebo is like another gathering point outside their homes. This is why we focused on the U.S. market and gradually integrated this category and its surrounding industries," he said.
From 2022 to 2024, Xiong Weiping’s business volume doubled year by year. However, the situation has changed this year. “We were quite concerned before the ‘reciprocal tariff’ came out, and we prepared some contingency plans,” Xiong Weiping said. “But after going to the U.S., we found that the impact wasn’t as big as we imagined.”
Xiong Weiping explained that the increase in tariffs led many people to believe that the Chinese production suppliers would bear the cost. “Many American clients and consumers think so too, but actually, it’s the U.S. purchasing companies that pay the tariff to U.S. Customs, which ultimately results in an increase in the end-user price.”
He mentioned that after visiting the U.S., the team discovered that dealers still had a high demand for their products. “Their procurement volumes are significant. The tariff may reduce profit margins, but it doesn’t mean they stop purchasing altogether. If we can find ways to reduce tariffs and costs, it would be better. We are negotiating on this issue,” he said.
In face-to-face communication, Xiong Weiping found that customers had also tried to find substitutes in Southeast Asia, but they later realized that the supply chain capabilities in our domestic market are hard to match. “China’s supply chain capabilities far exceed those of all other countries. For instance, the combined price of parts from A, B, and C might be higher than the total price of purchasing everything domestically plus the tariff,” he said.
Indeed, despite a 145% tariff, a Boston-based client still placed an order worth millions with Xiong Weiping.
Xiong Weiping repeatedly asked the client, “With the tariff in place, are you sure you want to place the order?” The American client admitted that after searching for substitutes, they couldn’t find any alternatives and thus “cannot do without China’s supply chain.” They even paid out-of-pocket for plane tickets to invite Xiong Weiping to the U.S. to take measurements and push forward the order.
Ma Tongwei, general manager of a machinery export company in Shandong, also managed to expand sales in the U.S. market. American clients told him, “Don’t worry about orders being transferred elsewhere because such cost-effective products can only be purchased in China.” Recently, Alibaba International Station, a B2B e-commerce platform focusing on export factories, has ranked among the top five downloaded apps in the U.S. and entered the top ten download lists in 120 countries globally.
Eye News compiled reports from Chaonews and China Youth Daily.
(Source: Eye News)
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