Opinion: Beijing Rallies Support as Exporters Face Tariff Headwinds
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In the Trump administration’s exorbitant tariffs, China’s export businesses face an existential threat. But Beijing is moving swiftly, banking on its vast domestic market to keep foreign trade enterprises afloat during these turbulent times. The Ministry of Commerce recently convened meetings with business associations and major retail companies to explore ways for exporters to pivot toward the local market. Central government efforts include a “Shop in China” campaign, while local governments are rolling out tailored support for hard-hit sectors and companies. Such measures are not just helpful, they are essential.
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- Despite rising U.S. tariffs, China’s GDP grew 5.4% year-on-year in Q1 and exports rose 6.9%; U.S. share of Chinese exports fell from 19.2% in 2018 to 14.7% in 2024.
- China is shifting exports toward its vast domestic market, with government initiatives like “Shop in China” and local support measures for affected businesses.
- Most exporters have contingency plans, and China’s diversified trade partners and strong domestic demand buffer the impact of tariffs.
- Shanghai
- According to the article, Shanghai is highlighted as a major economic hub where the Chinese government has launched pilot programs aimed at integrating domestic and foreign trade. These initiatives are part of broader efforts to harmonize standards and facilitate seamless business between domestic and international markets. The pilot phase of these programs is scheduled to conclude in 2025, providing timely groundwork to help tackle current tariff challenges.
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