Chinese Factories Scramble to Keep Up With US Orders Amid Trade Truce
Lu Hanzhi
DATE:  6 hours ago
/ SOURCE:  Yicai
Chinese Factories Scramble to Keep Up With US Orders Amid Trade Truce Chinese Factories Scramble to Keep Up With US Orders Amid Trade Truce

(Yicai) May 23 -- The recent US tariff hikes on Chinese goods did little to dent business for many Chinese factories and now manufacturers find themselves busier than ever, as US distributors race to stock up amid the latest tariff truce between the United States and China.

Amazon has not seen any drop in demand nor any major rise in the average price of goods, President and Chief Executive Officer Andy Jassy said at the US e-commerce giant’s annual shareholder meeting yesterday.

“One of our customers placed a USD100,000 order on April 12, and then he came back later with another USD200,000 order,” said Ding Linfeng, general manager of Shanghai Wareda Sunshade Equipment. “Even with all the tariff changes in the past month, demand hasn’t slowed down. Our factory has been operating at full capacity since April and is now even busier thanks to these follow-up orders.”

Wareda mainly makes sunshades for Recreational Vehicles, and the US accounts for half of its sales. Because it is not easy to find substitutes, US clients kept ordering even before the US and China agreed to pause their punitive tariffs on each other’s goods for 90 days on May 12.

Orders placed by US clients in early April were shipped out by May 16, Ding said. “My clients said the timing was perfect as not only did they dodge the higher tariffs, but they also didn’t have to fight for cargo space. Now they’re thinking about placing more orders.”

“The reason our clients are placing more orders is because they see this as a window of opportunity,” Ding added. “Right now, having enough products in stock is what matters most, so they’re trying to stock up while prices are still reasonable.”

“US demand hasn’t gone away,” a representative from e-marketplace DHgate told Yicai previously. “Price changes might affect what people buy, such as by choosing more affordable clothing, but not if they buy, so demand persists.”

After the recent tariff cuts, many Chinese vendors are noticing a sense of urgency from their US clients. “Some customers are in such a rush that they are asking that part of the order be sent by air, which rarely happened before,” said Wang Li, general manager of Shenzhen Maiqijia Home. Due to the ongoing tariff uncertainty, a lot of her US clients are stockpiling three to four months’ worth of inventory.

“Judging from the orders we have lined up, Yiwu Jingwen Import and Export will be operating at full capacity soon,” said General Manager Wu Qingfen. “One US client just ordered 300,000 pairs of socks and we don’t expect to finish production until the end of June,” she said.

Cross-border parcel shipments to North and South America have been steadily climbing, according to data from logistics firm Cainiao Global Express. In the third week of May, shipments to the US, Brazil, and Mexico jumped noticeably from the previous week. In April, Cainiao’s shipments to Brazil surged more than 80 percent from the previous month.

Editor: Kim Taylor

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Keywords:   USA,Tariff,Export