Global Times: 'First strengthen yourself, then compete': firms in China's Yiwu focus on boosting competitiveness amid US tariffs
PR Newswire
5 min read
BEIJING, April 26, 2025 /PRNewswire/ -- Inside a shop at the Yiwu International Trade City in East China's Zhejiang Province, visitors are greeted by a colorful array of household items such as water bottles and storage boxes in various sizes. At the counter, the shop owner is busy tapping away on a calculator, negotiating prices with a customer from India.
This is not an ordinary store that sells only to consumers who walk into the shop, but one that ships its products in bulk to overseas retailers. The US is one of the destinations. "We have about 20 US clients, and we have a relatively close relationship and coordination. There have been no big fluctuations," the shop owner surnamed Li told the Global Times.
Following the US' imposition of sweeping tariffs against its trading partners, with extraordinarily high rates against Chinese products, Yiwu, often referred to as the world's capital of small commodities, has drawn great attention.
However, contrary to major chaos and disruptions seen in global markets and reported in many places around the world, many businesses in Yiwu, while facing varying degrees of impact, projected calmness and confidence. Where does such confidence come from? In interviews with the Global Times, several local business owners often pointed to their unmatched competitiveness and emphasized their focus on strengthening their competitiveness amid growing external uncertainties.
Focusing on quality
For businesses in Yiwu, running their own affairs well means staying focused on continuously bolstering their global competitiveness - in terms of the quality of their products and the efficiency of their business strategies. "First strengthen yourself, then compete," as one businessman put it, when asked about Yiwu's response to the US' tariffs.
"Our products are essential goods. Whether in developed or emerging markets, the demand will not disappear," Wang Nan, owner of Conan Tools, a hardware shop in Yiwu, told the Global Times. His company has seen some disruptions from the US' tariffs, with outbound shipments suspended following the US' tariffs, but he is not worried. "The quality we deliver at this price simply can't be matched if produced domestically in the US."
Such quality and cost-effectiveness do not come easily; it requires unwavering focus, according to Wendy, Wang's daughter. "From raw steel to finished product, I personally follow up on production. I inspect surface treatments, materials, and check for burrs - basic but essential quality indicators. Every type of tool is sourced from specialized factories, and we sign formal procurement contracts specifying material, production details, packaging, and delivery timelines," she told the Global Times.
Quality and cost-effectiveness are what have drawn many clients from around the world to Yiwu.
"We come here twice a year," a trader from the United Arab Emirates told the Global Times, as he browsed through shelves of locks and hand tools at a store in Yiwu. "In Dubai, our customers want reliable quality at a good price - Chinese products strike that balance perfectly," the trader said. "In fact, some brands here now produce even better finishing than European suppliers I used to work with. That's why I've shifted part of my sourcing to Yiwu in the past two years."
Behind the strong competitiveness of Yiwu businesses is the vast, constantly upgrading manufacturing industry in China.
In the first quarter of 2025, China's manufacturing sales revenue increased by 4.8 percent year-on-year, 0.9 percentage points higher than that from 2024, according to official data. Meanwhile, as China's manufacturing further upgrades, investment is also expanding, with a 9.1 percent year-on-year increase recorded in the first quarter of 2025, official data showed.
Bolstering adaptability
Taking advantage of such a robust manufacturing base, many businesses in Yiwu have also been working to bolster their adaptability - another key competitive edge of Yiwu businesses - to cope with disruptions caused by the US.
Lou Haidong, owner of Yiwu Seachain Trade Co, a racing maintenance tool manufacturer where 80 percent of orders come from the US, recalled that in 2018, they faced similar export pressures, with orders to the US being paused for several months.
To overcome the pressure, the company has since established warehouses overseas to lessen the impact of tariffs and mitigate future uncertainties in the US market. Their global footprint has continued to expand ever since.
A staff member at Lou's company told the Global Times that as US policy grows uncertain, new opportunities are arising in Africa and the Middle East. "Individually, these markets may not match the US' volume; but combined, they present strong demand growth that can offset losses," the staff member said.
Yiwu Seachain Trade is not alone in expanding its overseas market. With global supply chains under strain, many businesses in Yiwu are also responding to tariff headwinds by embracing agility and enhancing custom manufacturing to meet market demands in the Middle East, Southeast Asia, Africa and beyond.
"There are no US-only sizes or standards that restrict our exports. If one country doesn't buy, we can still sell elsewhere," said a local hardware trader.
Currently, Yiwu trades with over 230 countries and regions, with significant growth in trade with emerging markets, including Belt and Road Initiative (BRI) partner countries. In 2024, Yiwu's total foreign trade value with BRI partner countries reached 413.34 billion yuan ($57.41 billion), an 18.2 percent year-on-year increase, accounting for 61.8 percent of the city's total, official data from local government showed.
Behind the strong resilience of Yiwu's exports is also strong support from the government. Amid recent disruptions caused by the US' tariffs, the local government is providing much-needed "stability," according to businesses.
The Yiwu government provides financial support to assist companies in exploring new international markets, covering various costs from booth fees to transportation, according to companies. Some companies said that the government covered all of their booth fees during a recent week-long exhibition in Africa.
"We don't put all our eggs in one basket. We collaborate with buyers in approximately 150 countries," Wendy told the Global Times, noting that when exports to the US were disrupted, the company quickly shifted focus to other markets and has already secured new clients in South America and the Middle East.
