Exporters find new home in domestic market

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By Fan Feifei (China Daily) 13:53, May 26, 2025

(Ma Xuejing/China Daily)

Chen Han, 26, operates a toy factory in Shantou, Guangdong province. The factory, founded by his parents more than 10 years ago, receives trade orders from abroad and used to supply various types of toys for brands and dealers in the United States.

However, the US government's recent move to increase tariffs on imports from China and other trade partners has raised export costs for the Chinese toy manufacturer and prompted it to seek out new channels and markets to boost sales.

Chen, general manager of Shantou Qilong Toys Co Ltd, said his company's production was relatively stable in March, but the number of orders declined in April. "Some of our US clients have canceled orders due to the increased tariffs," he said.

Currently, orders from the US account for about 30 percent of the company's total, and that from Southeast Asia and European countries make up for 40 percent, while the domestic market takes up about 30 percent.

The toymaker is expanding sales channels to reach more domestic consumers and alleviate inventory pressures by leveraging e-commerce platforms such as Alibaba Group's business-to-business trading website 1688.

The site provides Chen with useful guidance and suggestions, including store operations, pricing and marketing strategies.

"We are actively expanding our presence in some emerging markets, such as South America and the Association of Southeast Asian Nations, to diversify our business layout globally, reduce overreliance on a single market and hedge against external shocks," Chen said.

He noted that artificial intelligence will significantly bolster technological innovation, product iteration and industrial upgrades in the homegrown toy sector. "Looking ahead, we will design more customized products containing innovative digital technologies in accordance with the preference of local consumers."

Chen is among millions of young Chinese entrepreneurs who are capitalizing on domestic online marketplaces to expand sales channels, and marching into more diversified overseas markets to secure new orders and rev up sales amid a complicated external environment.

Major Chinese e-commerce platforms have ramped up efforts to help the country's exporters sell their products at home, expand domestic demand and relieve export pressures, as part of a broader push to mitigate the effect of US tariff increases.

Experts said the supportive measures will help export-oriented companies open up the domestic market, strengthen domestic circulation and boost consumption, while further unleashing the vitality and potential of China's ultra-large consumer market.

Alibaba Group's online marketplaces Taobao and Tmall have announced it will provide assistance to at least 10,000 Chinese companies involved in foreign trade and promote domestic sales of 100,000 foreign trade goods, helping exporters shift their focus to the domestic market.

Detailed measures include simplified registration, commission incentives, localized sales guidance, data traffic support and direct procurement services.

Taobao and Tmall have cooperated with more than 20 local authorities nationwide to carry out special activities, including investment promotion and training sessions for export-oriented companies. At present, more than 20,000 exporters have completed the process — covering entry, product listing, and operation and sales on the platforms.

1688 has rolled out a series of relief measures for enterprises facing obstacles in export, such as commission fee reductions, as well as loans and subsidies, while offering merchants and buyers free access to AI-powered digital tools.

Guangdong province-based company Zhuhai Kingdom Electrical Appliance Co Ltd has for long been exporting products such as hair steamers, facial steamers and beauty instruments, and is popular among European and US consumers.

Ma Hong, general manager of the company, said sales from overseas markets account for 60 percent of its total, among which the proportion of the US exceeds 50 percent. "We are facing severe challenges due to the impact of US tariff policies, as nearly 100,000 units of products have been overstocked."

After learning about the demand, Chinese e-commerce giant JD sent a purchasing and sales team focused on personal care appliances to the company.

"Within just half a day, they helped us select over 10,000 products that could be immediately sold on the platforms," Ma said, adding that the team will assist the company in selling the first batch of products as soon as possible by adding Chinese instruction manuals.

The move is part of JD's recent commitment to purchase 200 billion yuan ($27.6 billion) worth of goods from exporters over the next year to help them sell products domestically. It has sent professional procurement teams to foreign trade companies and directly purchased their high-quality products.