Signs reading "Tariff only 14%" on display above speakers at the Canton Fair in Guangzhou, China, on Wednesday, April 16, 2025. The second phase of the 137th Canton Fair attracted more than 224,000 buyers from 219 countries and regions. - Bloomberg
BEIJING: A survey covering more than 1,100 Chinese foreign trade companies found that nearly 50 per cent of respondents will scale back their business activities with the United States amid tariff hikes.
The survey results, released on Monday (April 28) by China's top foreign trade and investment promotion agency, also said that 75.3 per cent of surveyed companies are seeking to expand into emerging markets to compensate for the reduction in exports to the US.
The study was conducted recently by the China Council for the Promotion of International Trade to analyse the impact of US tariff hikes on Chinese exporters, so that the agency can provide targeted trade promotion services.
Zhao Ping, spokeswoman for the trade promotion council, said at a monthly news conference in Beijing that the frequent changes in US tariff policies have significantly increased uncertainty, making it difficult for Chinese manufacturers to plan for the long term.
Chinese exporters are exploring new markets, boosting domestic sales, strengthening supply chains and adapting to changes, in order to overcome the current challenges, she added.
Zhang Sihong, deputy director of the China Foreign Trade Center, one of the organisers of the China Import and Export Fair, also known as the Canton Fair, in Guangzhou, Guangdong province, said these moves are part of a broader strategy by Chinese manufacturers to diversify their markets and enhance supply chain resilience.
"Overseas companies are also seeking to strengthen cooperation with Chinese exporters to mitigate the impact of unilateralism on their businesses," said Zhang.
For instance, the second phase of the 137th Canton Fair, which concluded on Sunday, attracted more than 224,000 buyers from 219 countries and regions, the highest number recorded for the same phase in the fair's history.
Wang Li, a researcher specialising in foreign trade at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said that Chinese companies, faced with mounting external pressures, are eager to reduce reliance on a single market and build more adaptable, risk-resistant business models to maintain steady growth in the long run.
One such company is Shandong Lingong Construction Machinery Co, a manufacturer of wheel loaders and excavators based in Linyi, Shandong province. The value of the company's exports to economies participating in the Belt and Road Initiative exceeded 600 million yuan ($82.2 million) in the first quarter of 2025, accounting for more than 70 percent of its total export value, according to Qingdao Customs data.
"To mitigate risks arising from protectionism in recent years, we have been actively expanding our sales network in emerging markets and establishing partnerships in regions and countries such as Central Asia, Latin America, South Africa and Indonesia," said Zhang Chengwei, head of Shandong Lingong's excavator unit.
Meanwhile, Ningbo Careline Electric Appliance Co, a home appliance exporter based in Zhejiang province, said it has seen strong domestic demand for its newly launched smart air fryer after shifting its focus to the local market earlier this year.
"Amid this year's complex and volatile international trade environment, we responded swiftly to market trends and seized opportunities in the domestic market to expand our sales network," said Yu Xiongwei, the company's president.
In the first quarter, Ningbo Careline's total orders grew more than 20 percent year-on-year, with domestic sales accounting for more than 20 percent of total sales. Revenue from domestic sales surpassed 40 million yuan during this period, according to Ningbo Customs.
Efforts to expand international engagement are also accelerating, as the China Council for the Promotion of International Trade has organised 184 delegations of Chinese entrepreneurs to visit and engage in exchanges with 45 countries and regions since the beginning of this year. - China Daily/ANN
