Donald Trump expected in China at the end of the week, against the backdrop of trade tensions between Beijing and Washington. But in Yiwu, a huge Chinese export platform, many traders say they have learned to live without the American market. After years of trade war, they have turned to Africa, the Middle East, or Central Asia. And today, some are more concerned about conflicts in the Middle East than American tariffs.
From our special envoy in Yiwu, Clea Broadhurst, and Lei Yang
In the alleys of the world’s largest wholesale market, Yiwu traders all tell the same story: the trade war launched by Donald Trump has transformed their activities. Li Ye, vice president of the Yiwu Chamber of Commerce, explains the consequences of these tensions: “Since the trade war, exports have become difficult, so we have shifted to other markets. At one point, tariffs reached 100%, which reduced orders to zero.”
For many local businesses, the United States remain a profitable market. But after several years of trade tensions, many of them have started to diversify their outlets. This is confirmed by Li Tenghui, a wholesale merchant: “Many clients canceled their orders or abandoned goods. We had to sell off the stocks through various channels, including clearance sales, or re-export to other countries. Today, many colleagues in Yiwu no longer see the United States as a primary market. They started reorienting themselves long ago.”
Now, Africa, the Middle East, and Central Asia are taking an increasing share of Yiwu’s exports. When trade routes close, traders seek other solutions, as explained by Li Ye: “Before, we could sell things directly without detours. Now, it doesn’t work. So, I take some detours. Chinese people have a great ability to find other paths, if we are allowed to do so.”
But today, it is mainly tensions in the Middle East that worry traders, like Li Tenghui: “The Middle East represents 25 to 30% of our turnover. It is not just about rising prices or customs duties: customers simply cannot buy anymore. Ships cannot dock, they dare not dock.”
The same observation is made by Yu Jiani, a Halloween decorations seller: “The war mainly affects our raw materials. Oil is unstable, so is fabric. Delivery times for raw materials have gone from one week to one month, and prices have increased a lot. Some materials have increased by about 10%.”
However, in the aisles of the market, foreign buyers continue to flock. Among them, Ibrahim, a Jordanian trader who has been sourcing from Yiwu for twenty years. “I think no country is better than China. In China, you can find everything you want. If I can’t go to China, I may have to end my business,” he confides.
In Yiwu, despite trade wars and regional conflicts, many remain convinced that it will be necessary to continue to go through China to keep global trade running.
Context: The article discusses the impact of trade tensions and tariffs between China and the United States on the traders in Yiwu, a major Chinese export platform.
Fact Check: The content accurately describes the shift in focus from the American market to alternative markets such as Africa, the Middle East, and Central Asia due to trade wars and conflicts in the region.
