Exporters expand markets amid potential US tariff hikes

With many parts of the world facing potential tariff hikes from the new administration of the United States, a large number of Chinese manufacturers have been taking proactive steps to diversify their trade markets, focusing on expanding into emerging markets and upgrading products.

Many Chinese exporters said they are also placing strong emphasis on driving innovation to mitigate the effects of potential tariff hikes, aiming to maintain competitiveness in the face of external pressures and ensure sustained growth in global markets.

In addition to threatening a 25 percent tariff on imports from Mexico and Canada, US President Donald Trump said on Tuesday that he is considering a 10 percent import tax on Chinese products, possibly as early as Feb 1. He also reiterated his commitment to imposing tariffs on the European Union.

Foreign Ministry spokeswoman Mao Ning said at a news briefing in Beijing on Wednesday that China always believes that there is no winner in a trade war, and China always remains unswerving in safeguarding its national interests.

Liu Ying, a researcher at Renmin University of China's Chongyang Institute for Financial Studies, said, "Chinese companies are no strangers to US tariffs in recent years."

Many Chinese companies have already expanded into emerging markets and are developing tech-intensive green products, including electric vehicles and dual-fuel ships, to reinforce their earning strength and mitigate the risks posed by protectionist measures and geopolitical tensions, said Liu.

For instance, the trade value between China and Vietnam hit a record high of $205.2 billion in 2024, a new milestone in their trade ties. This marks an increase of $33.3 billion compared with 2023, statistics from the Chinese embassy in Vietnam showed.

Rather than focusing solely on developed markets, Luoyang Zhufeng Huawin Motor Tricycle Co, a Luoyang, Henan province-based manufacturer, has been expanding its presence in emerging markets by participating in various international trade shows, and has established regional sales and service offices in Bangkok, Thailand, and Accra, Ghana, in recent years.

The demand for motorized tricycles varies in different regions and countries. In Thailand and Indonesia, electric tricycles are widely used to support the local tourism business. Gasoline-powered tricycles are mainly used for transporting cargo in Africa, with larger and more durable designs, said Li Pengfei, the company's vice-president.

"In North America and Europe, there is strong demand for tricycles used on farms," said Li, adding that the company shipped products to clients in South America for the first time in December, and its export value reached 91 million yuan ($12.5 million) in 2024.

Changzhou Xinqida Electric Co, a household appliance manufacturer based in Changzhou, Jiangsu province, has also been heading in that direction. The company saw its exports of smart cordless vacuum cleaners surge in emerging markets, especially in Brazil and South Africa, last year.

"Amid uncertainties like potential tariffs and other trade measures in certain countries, coupled with a highly competitive domestic market, we have shifted our focus to emerging markets since 2021," said Qiu Riju, the company's general manager.

Qiu said the company has built a stable supply chain in Brazil, and the value of its exports to the Latin American country steadily increased last year, reaching 5.2 million yuan.

Denis Depoux, global managing director at German management consultancy Roland Berger, said that in order to remain competitive, it is crucial for Chinese exporters to accelerate efforts to improve performance and reduce costs.

The total value of China's foreign trade in 2024 reached a record high of 43.85 trillion yuan, up 5 percent year-on-year, data from the General Administration of Customs showed.

In addition, China saw growth in exports to more than 160 countries and regions, including a 9.6 percent year-on-year rise in exports to economies involved in the Belt and Road Initiative, and a 13.4 percent year-on-year increase to the Association of Southeast Asian Nations.

zhongnan@chinadaily.com.cn