In eastern China’s Yiwu, a city famous for small commodity trades, businesspeople sensed the uncertainties around the new tariff policy of the U.S. and started to prepare for possible challenges. Li Jiaming has more.
The Christmas vibe is in full swing in eastern China’s Yiwu City. It is known as China’s capital of small commodities. Data show that eight out of ten Santa Claus model worldwide are from here. Behind this commercial dominance lie price, product and purchasing ease.
YU QIAOFANG Christmas Accessory Vendor “The products here are designed by us. We have competitive price and products. Our goods are sold to over a dozen countries.”
Shops here, albeit small, sell products to dozens of countries. Due to the nature of the business, small gadgets here are sensitive to the changes of international economic landscape, such as rise of tariffs and the fluctuations in exchange rate.
YU QIAOFANG Christmas Accessory Vendor “Since our production line is here, we do not plan to relocate. Instead, we aim to improve our products, making those more likeable.”
Besides manufacturers, the supply chain has also started preparing to cope with the possible tariff changes.
LI JIAMING Yiwu “This is Yiwu Port, the central transit hub of small commodities. From ribbons to threads, light bulb to Christmas stuff, it sells everything everywhere.”
Jin Xufeng owns a global logistics company. He says businesspeople will always find a way to do business no matter how the “climate” changes.
Jin Xufeng General Manager, global logistics company “We are also diversifying our market, seeking new opportunities in emerging markets such as central Asia.”
Businesspeople in Yiwu tell CGTN they have seen worse. But experience has shown that as long as the demand is there, trade goes on. LJM, CGTN, Yiwu.