New global markets, sales methods emerge from smoke of US tariff war

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By Cang Wei, He Chun, Qi Xin (China Daily) 08:28, May 12, 2025

Staff members sort out and pack shoes at a logistics station of the Desai Group on April 20 in Wenzhou, Zhejiang province. The shoe manufacturing company has been engaged in trade for decades. (Liu Jili/Xinhua)

Amid the roar of machinery at a motorcycle factory in Luoyang, Henan province, hundreds of wooden crates marked with delivery details of customers in Europe, Africa, and Asia are loaded onto trucks.

Produced by Luoyang Northern Ek Chor Motorcycle Co., Dayang brand motorcycles are popular both at home and overseas.

Last year, over 200,000 motorcycles and three-wheelers were shipped from the factory to destinations around the world.

Li Bin, deputy director of the company's overseas marketing department, said that although the United States is not one of the company's main export markets, business is still affected by the ongoing uncertainty over US tariff policies.

"In the first quarter of this year, our company's exports grew by over 20 percent compared with last year. The impact of the tariff war may lead to a slight decline in growth in the second quarter," said Li.

However, he added that as long as the company is sincere with its customers and dedicated to producing quality products, there is the potential to broaden global markets.

In recent years, the Association of Southeast Asian Nations members have collectively surpassed the US to become Henan's largest trading partner, according to statistics from Zhengzhou Customs.

The province has also seen steady growth in imports and exports with countries and regions participating in the Belt and Road Initiative along with emerging overseas markets under the Regional Comprehensive Economic Partnership.

When the US imposed an initial increase of 34 percent on Chinese products in the first round of tariffs, customers in the US factored in adjustments to retail prices, Li said. Although many US consumers have a special liking for three-wheel motorcycles, increased prices due to the tariffs will inevitably reduce sales, he said.

"It also compels us to delve deeper into the path of comprehensive internationalization," Li said.

Considering the unpredictable duration and cycles of the tariff war, the company's priority now is to explore niche markets, expand its domestic and international markets, and build a larger customer base, he said.

The motorcycle manufacturer is also considering collaborating with overseas companies to establish local operations.

"For example, in Mexico, if we assemble locally, according to previous policies, we could save 10 percent on tariffs," Li said.

A foreign trader inspects a Dayang motorcycle at the 137th China Import and Export Fair. (Photo/China Daily)

Quality matters

The US tariffs have brought significant uncertainty to foreign trade enterprises, with many companies facing increasing pressure to take proactive measures to address the situation.

Deng Lin, chairman of Liling Caifeng Fireworks Co., in Zhuzhou, Hunan province, acknowledged the immediate challenges posed by the "unstable" US tariff rates, which have disrupted new orders and slowed production.

"Our products, aside from being sold domestically, have the United States as a primary export market," he said.

Deng said clients are pausing orders to negotiate with the US government on the tariffs.

He added the company is currently expanding its presence in the domestic market, while exploring opportunities in other markets including Europe and Southeast Asia.

Deng participated in the 19th International Symposium on Fireworks and the First Hunan (Liling) Fireworks Industry Expo on April 21 in Zhuzhou, hoping to cultivate new clients.

Hunan exported 4.84 billion yuan ($666 million) of fireworks and firecrackers last year, accounting for 58.6 percent of the country's total fireworks exports, according to Changsha Customs.

The US remains the biggest fireworks export market for the province, with 1.7 billion yuan of the product exported to the country in 2024, marking a year-on-year increase of 28.1 percent.

During the expo, fireworks manufacturers said the superior quality and variety of Chinese products had helped them maintain a competitive edge that can see them withstand the impact of the new tariffs.

Li Yanping, Chairman of Hunan Hengda Fireworks, said the fireworks sector remains relatively confident about overcoming the US tariffs. When everything is settled, global consumers will still purchase Chinese products, she said.

"People won't stop celebrating with fireworks. Fireworks symbolize resilience and joy — a universal human need," she said.

Foreign traders learn about the products of Liling Caifeng Fireworks Co during the 19th International Fireworks Symposium in Liling, Hunan province, in April. (Photo/China Daily)

Benefits of diversification

Wuxi Rapid Scaffolding (Engineering) Co. is a national high-tech enterprise specializing in the research, development, production, sales, design, and leasing of various scaffolding products.

In 2024, the company, headquartered in Wuxi, Jiangsu province, achieved sales revenue of 380 million yuan.

Sun Ziling, head of its marketing department, said North America accounts for about 15 percent of the company's total business.