Chinese exporters seek new markets to offset US tariff impact amid trade war

Chinese exporters have begun seeking new opportunities to tap into global markets in the face of the ongoing trade war with the United States.

Key to this are trade fairs, where many can showcase their products and create sales channels to offset tariff impacts, with the end goal of finding other opportunities beyond traditional markets like the US.

Of the several trade fairs, two major trade fairs—the Canton Fair and the China International Consumer Products Expo (CICPE)—serve as key platforms for businesses.

The booths of this year's Canton Fair in the southern Chinese metropolis of Guangzhou, Guangdong Province, are highly sought after among Chinese exporters hoping to build new business relationships in alternative markets.

"We will surely expand our markets abroad besides the United States. This product is a key focus at present. It has up-to-date functions. Clients from Poland and the Netherlands wanted to sign an exclusive distribution agreement with us right here," said Tang Shousheng, an exhibitor.

Beyond sales expansion, Chinese exporters are also investing in overseas production facilities to strengthen their presence in global markets.

Quest to diversify and keep resilience

"We plan to invest 10 million yuan (about 1.37 million U.S. dollars) in building overseas factories. In fact, we have already found local suppliers for essential components such as plastics, SMT (surface-mount technology) patches, and packaging materials like colour boxes," said Huang Shuyu, an exhibitor.

Organisers of the Canton Fair say around 31,000 firms are participating in this year's fair, which runs till 5 May, up by nearly 900 compared with the previous one.

At the just-concluded CICPE, many Chinese exporters tried to diversify their brands and supply chains, hoping to ensure they remain resilient in an unpredictable trade environment.

Some businesses are introducing proprietary brands tailored to specific international markets and to expand their domestic market share.

"We started to launch our own brands last year, and these products have performed very well in the Russian market," said Ran Yan, an exhibitor.

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Despite the trade disruptions, many exhibiting businesses remain committed to global expansion "We have not given up the global industrial layout in terms of our overall brand strategy," said Li Rongsheng, said one exhibitor.

The US and China are locked in a trade row that has seen Washington impose tariffs of more than 145 percent on Chinese goods entering the US.

In March, China's exports jumped 12.4% from last year in a last-minute flurry of activity as companies rushed to beat increases in the tariffs, and analysts forecast sharp setbacks.

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