By Ouyang Jie, Ke Zhongjia, Liu Junguo, People’s Daily
Following tangible progress made in the China-U.S. high-level meeting on economic and trade affairs, merchants at the Yiwu International Trade Market in Yiwu, east China’s Zhejiang province, dubbed “world’s supermarket,” are busy reconnecting with U.S. buyers, while freight forwarders and logistics firms are seeing a surge in activity.
And Wang Nan, general manager of Kenan Hardware Tools Store, is among the many merchants preparing shipments for the United States.
“We used to send one container each month to our American client, but shipments were put on hold in April,” Wang explained. “The day the joint statement from the China-U.S. talks was released, our client immediately reestablished contact. They not only resumed previous orders but also placed an additional order.”
According to Wang, the client had planned to open a franchise store in New York in July, but the plan was suspended in April. “Now they’ve confirmed the store will open as scheduled,”he added.
While U.S. orders are bouncing back, businesses in Yiwu are simultaneously diversifying their global portfolios.
Liu Jianhao, head of sales at Zhejiang Rifeshow Cosmetics Co., Ltd., has been visiting several African countries in recent days to broaden the company’s market presence.
“After the joint statement was issued, our American clients promptly reached out. We’re now fulfilling previously postponed orders,” Liu said. “And we’re working hard to recoup the performance losses from April.”
In recent years, Rifeshow has steadily diversified its overseas footprint. “This trip focuses on expanding into Tanzania, Senegal, Nigeria, and Ghana,” Liu said.
“Chinese-made perfumes are very popular in Africa, and we’re developing products tailored specifically to local preferences. When you have a strong and stable supply chain, good quality and a large market mean solid sales,” Liu added.
Similar dynamics are playing out at Linhai Sirou Clothing Manufacturing Co., Ltd., based in Linhai, Zhejiang. The company has recently ramped up production to meet surging U.S. orders. “Our American clients have quickly increased their order volumes, often with tight delivery deadlines. Our workers are working overtime to meet the demand,” said Shao Jingfeng, general manager of the company. “They’ve come back to us multiple times over the past month, which shows our products are still highly competitive.”
Shao has also been thinking seriously about the company’s transformation, with a strategic focus on reducing dependence on a single client or market. This year, Sirou plans to expand into South America, Southeast Asia, and Europe, while also deepening their presence in the Chinese domestic market.
The ripple effects of increased trade activity are also being felt among logistics service providers. Yinghe Express, the largest cross-border e-commerce logistics company in Yiwu serving U.S. exports, has reported a sharp uptick in business.
“Since the joint statement was released, shipments to the U.S. have jumped by nearly 30 percent,” said Cheng Hongrui, head of sales at the company.
Freight rates have risen in tandem with demand.”Shipping a 40-foot-high cube container has gone up from about $2,500 to over $3,000 last week. In the secondary market, buyers are even paying premiums just to secure containers,”said Cheng.
Cheng believes the recent spike reflects a release of backlogged demand. “What we’re witnessing is a wave of delayed orders being cleared. Things are expected to stabilize in a little while,” Cheng added. “For businesses, growth comes through navigating both challenges and opportunities.”
