While the United States” unwarranted imposition of tariffs has strained the nerves of traders around the globe, merchants in Yiwu, Zhejiang province, are confident their exploration of diversified export markets over the years will shield them from any heavy impact.
Known for its “small profits, quick turnover” model, Yiwu International Trade Market is renowned as the world capital of small commodities. The market consists of five districts housing 75,000 stores, with over 3,000 of those exporting merchandise to the US.
Yiwu Yexin Electronics began operating in the market in 2010 and currently has four stores across the districts. Company sales manager Mao Yeqiang said like many operators in the market, they follow a “store in the front, factory in the back” model and mainly export wearable products such as headphones and smartwatches to Europe, Southeast Asia and South America.
This year, Southeast Asia will account for 60 percent of their exports, and Europe about 30 percent. “US orders were normal last year, but this year they’ve nearly vanished, dropping from 10 percent to far less,” Mao said.