China's ‘world's supermarket' eyes thriving prospects amid trade uncertainties
YIWU (May 29): Despite global tariff headwinds, east China's Yiwu, a renowned global trading hub known as the 'world's supermarket', stays bustling as usual.
Colourful toys, sleek electronics and intricate handicrafts continue to roll off assembly lines here, exhibiting the rhythm of global commerce that refuses to skip a beat.
In the first quarter of this year, Yiwu's total import and export value reached 167.45 billion yuan (about US$23 billion), an increase of 13 per cent year on year, while exports climbed 14.5 per cent to 147.27 billion yuan.
Merchants in the city have shown strong resilience and expressed confidence in long-term prospects, citing diversified markets, agile supply chain adaptations and proactive risk mitigation strategies.
Strong resilience
Home to around 18,000 resident foreign merchants, Yiwu serves as a vital link, connecting more than 2.1 million Chinese enterprises with over 230 countries and regions worldwide.
It is often seen as a barometer of global consumer demand. The Yiwu International Trade Market attracts an average of 220,000 visitors per day.
For many Yiwu merchants, a diversified market has been the cornerstone of their resilience, allowing them to navigate the tariff tempest with strategic agility.
'US (United States) tariff policies have limited impact on us, and our sales are stable,' said Zhang Cuiyan, general manager of Ningbo Guanjiang Tools Co Ltd which produces a wide range of hardware tools such as wrenches.
With about 20 years of experience, the company exports to over 100 countries and regions, she said, adding that demand from their existing clients remains strong.
Meanwhile, some businesses that have traditionally relied on the US market had already begun making adjustments before the raised tariffs.
Huahong Art Home Shares Co Ltd is one of the Yiwu-based firms actively exploring new markets outside the US, which has long been a major export destination for its artware.
Since last year, the company has been expanding into markets in Southeast Asia, Latin America and Africa.
'We're confident and assured about the road ahead,' said Helen Wang, the company's general manager, who is also setting her sights on China's vast domestic market.
'We have added new product categories to ensure that domestic orders keep growing,' she said, noting that a stronger focus on the domestic market is one of their solutions in response to possible tariff challenges.
The company currently employs around 200 designers to push for innovation and move the company up the value chain. It has recently established a gift production unit, leveraging its expertise in artware manufacturing to tap further into the domestic consumer market.
Wang also revealed plans for a multi-functional lifestyle space that blends coffee, tea, flowers, baking, aromatherapy, pottery and decorative art, a concept growing in popularity among young consumers in China.
Cautious but confident
Many Yiwu merchants welcomed the results of a recent China-US high-level meeting on bilateral tariffs, although they remain cautious about a full rebound in exports to the US.
Glasses manufacturer Chen Haihong received messages from her American clients to resume the canceled orders, right after the joint announcement of tariff modification.
She said the company plans to continue expanding in the US market while diversifying its product range, exploring opportunities in other countries, and growing through both online and offline channels.
'Yiwu should strengthen itself and develop a long-term vision,' said Li Qian, professor with the International Business School of Beijing Foreign Studies University.
She suggests Yiwu continue to explore emerging markets, accelerate digital transformation and invest heavily in cross-border e-commerce.
Helen Wang from Huahong Art Home Shares expressed optimism that Chinese businesses will adapt.
'The spirit of Yiwu is about a fearless attitude toward hardship, a keen sense of market trends and rapid response, and the agility to adapt and transform with speed,' said Wang, a Yiwu native who has built up her business with her family from scratch, like many other merchants here.
'I think businesses in Yiwu will continue to grow, and the prospects of Yiwu will remain buoyant,' she added. – Xinhua China world's supermarket Xinhua Yiwu
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