China's foreign trade sector moving fast to navigate tariff headwinds

Despite tariff challenges, Yiwu International Trade Market in east China is as bustling as usual, with buyers from across the globe busy negotiating prices with vendors and placing orders.

Small businesses in Yiwu, a city in Zhejiang Province known as "the world's supermarket," have demonstrated strong dynamics and great composure in the face of tariff hikes.

"In Yiwu, we are doing global business and our trade will not be affected by merely a few countries or regions," said Sun Lijuan, a vendor at the market.

According to a survey in the trade market, among the over 3,000 merchants involved in trade with the United States, only about 100 merchants are doing business directly with U.S. buyers.

Facing disrupted global trade, China has taken swift and proactive measures to cope with tariff shocks -- reaching out to broader overseas markets while bolstering domestic sales channels with upgraded products.

REACH OUT TO BROADER MARKETS

Over the past two weeks, China's Commerce Minister Wang Wentao has held talks with senior officials from multiple countries, including Malaysia, South Africa and Saudi Arabia, calling for enhanced communication and stronger cooperation in times of global economic uncertainties.

To shore up foreign trade firms, major export-focused localities have come up with tailored policies. For instance, export hub Shenzhen in south China's Guangdong Province has launched a special platform connecting exporters with potential clients across the globe, while east China's Shanghai has established a coordination mechanism to help enterprises go global.

For forward-thinking foreign trade firms, market diversification has always been an integral part of their development strategy.

Shenzhen Longsys Electronics Co., Ltd., a semiconductor memory manufacturer, has expanded its global footprint through strategic acquisitions in recent years -- making forays into markets in Latin America and Europe.

"Overseas expansion is a long-term commitment, especially amid a complex external environment," said Yao Jiashuai, investment and public affairs director of the company.

Building on its global distribution network and supply chains in China, the company reported record global sales for its sub brand Lexar last year, while its subsidiary in Brazil also logged strong growth.

China has made notable advances in diversifying its foreign trade markets. According to customs data, China's trade value with the ASEAN bloc rose 7.1 percent from a year earlier in the first quarter of 2025, while that with Belt and Road partner countries and the European Union went up 2.2 percent and 1.4 percent, respectively.

TAP INTO DOMESTIC MARKET

As the world's second-largest economy and second-largest consumer goods market, China is capable of offering ample buffer zones and strong backing for export-focused enterprises grappling with tariff challenges.

To help export-oriented firms pivot toward the home market, the Ministry of Commerce has met with industry associations, major retailers and distributors -- exploring approaches to broaden domestic sales channels for export-oriented firms.

A recent initiative taken by the ministry is the stimulation of domestic consumption of export products. Under this scheme, quality export products have been brought to supermarkets, stores and online retail outlets nationwide, while also being included in the consumer goods trade-in program.

China's industry associations, major retailers and e-commerce platforms have also made contributions in this regard, establishing channels to put export-blocked inventory on shelves and helping export-focused firms better adapt to the Chinese market.

E-commerce giant JD.com, for instance, has set up a procurement fund totaling 200 billion yuan (about 27.7 billion U.S. dollars) for massive purchasing of export-oriented products over the next year.

A CHANCE TO TRANSFORM

For companies seeking growth opportunities, technological innovation and product competitiveness remain key to navigating global trade volatility.

Nanjing TICA Climate Solutions Co., Ltd., a company specializing in environmental protection, is a prime example of how innovative development can withstand external headwinds. Thanks to continuous investment in research and development, its magnetic suspension products have outperformed competitors, securing 30 percent of the global market share.

To cope with market challenges and capitalize on emerging opportunities, it is imperative for enterprises to concentrate on core business and build up capacities, said Jiang Li, chairman of the company.

Innovation has become a defining feature for China, the world's top goods trader. From electric vehicles to industrial robots, Chinese products now feature greater technological sophistication, gaining increased popularity among global consumers.

Customs data has captured the country's transition toward high-end, intelligent and green development. In the first quarter of 2025, the export value of China's wind turbines, lithium batteries and electric vehicles grew by 43.2 percent, 18.8 percent and 8.2 percent year on year, respectively.

For China's foreign trade firms, the development journey has not always been rosy, but they have thrived in the face of difficulties.

"Businesses have enhanced their operational efficiency and improved product quality while coping with challenges," said a manager with a textile fabric manufacturer in east China's Fujian Province. "Experience has proved that external shocks can also be a chance to transform." ■