Contrary to expectations that Yiwu in Zhejiang, China, known as the "world's largest wholesale market," would be hit hard by high tariffs from the U.S. administration of Donald Trump, exports have instead surged, drawing attention to the reasons behind it.
On the 1st (local time), the South China Morning Post (SCMP) reported, "Despite U.S. President Donald Trump's tariff policy, Yiwu's exports have shown remarkably strong resilience," adding, "Yiwu replaced reduced sales in the U.S. market with other markets far more easily than expected."
According to local customs data, Yiwu's total imports and exports from January to October last year reached about 700 billion yuan (about 145 trillion won), up 25.2% from a year earlier. Although the remaining two months of statistics have not yet been compiled, last year's trade volume has already surpassed the previous year's annual result. Even looking only at exports, the export value rose 24.4% from the same period a year earlier.
Yiwu in Zhejiang, China, was expected as recently as April last year to be the biggest victim of the U.S.-China tariff war. Yiwu International Trade City, known as the "supermarket of the world" for supplying more than 2.1 million kinds of sundries worldwide, had exported low-cost goods to the United States in large quantities, including "Make America Great Again (MAGA)" hats and Christmas decorations. In fact, as of 2024, about 15% of Yiwu's total exports went to the United States.
However, Yiwu opened new export channels in emerging markets to offset losses in the U.S. market. From January to October last year, Yiwu's trade with Association of Southeast Asian Nations (ASEAN) countries jumped 51% from a year earlier, while trade with Africa and Latin America increased 21.8% and 14%, respectively.
Wannan, who runs a hardware store in Yiwu, said, "Until last year, U.S. customers accounted for a large share, but tariffs changed everything," adding, "Thanks to finding new partners in the Middle East, Central Asia and Africa, export orders have actually increased." Wannan emphasized, "Yiwu does business with the whole world, not relying only on the U.S. market."
Having succeeded in cultivating emerging markets, Yiwu is also diversifying its export items. Chen Gong, founder of the Beijing think tank Anbound, said, "Emerging markets such as Iraq, Iran and several South American countries are becoming a new driver of Yiwu's export boom," analyzing that "as these countries push postwar reconstruction and economic development projects, there is strong demand for building materials, daily necessities and machinery."
Yiwu authorities are also actively supporting exports. To promote the "Yiwu umbrella" brand, they held a cultural products fair in Indonesia in Nov. last year and are hosting product fairs in several overseas cities. The China-ASEAN Free Trade Area (FTA) 3.0 agreement signed in Oct. last year is also serving as another boon for Yiwu exporters, SCMP said.