China’s trade departs from us, even in the Iva

This report is given using the CNBC China Connection newsletter that gives you an understanding and analysis of what drives the second -largest economy in the world.

Three young boys who ate lollipops joined me on the elevator inside the five -story “International Trade Market” delivered Most Christmas in the world Decorations.

The children ran out before I left. When I visited one of the largest wholesale markets in the world, there were more children than buyers, a few days before the end of the summer vacation in China. The pieces of Lego lay scattered at the entrance to the store, and the escalators were stopped – the signs said it was “for the safety of children”.

Be it in the morning on weekdays or afternoon, the legendary yiwu market – which has a “supermarket in the world” – was unexpectedly calm.

Was the US-Kita trade war guilty?

Lee, the seller of the sponge and the cleaners, claimed that this is not the peak of the season for foreign buyers, and that his customers were from the Middle East and Southeast Asia – not in the US

The influence of the tariffs is not great, Lee said, who refused to share his full name. But he hinted that the factories in his home province were tougher.

It repeated the silence I encountered during my visit. None of the dozens and the other enterprises I talked to the question.

But it was clear that their client base had changed. I noticed more signs in Arabic and sometimes Korean or Russian, not ordinary English and Chinese. Big spots on the same floor that sell scarves focused on Headscarves or Hijabs.

Exports to the United States with Yiwu gathered from about 20% eight years ago up to 15% last year, and now even lower, said Ashish Manga, founder and CEO of Imex Sourcing.

The decline of IVA exports to the US reflects the national fall. China’s exports to the US fell 12% over the year to July and exports to 10 largest economies In the Middle East, the Middle East increased by 13%, according to the CNBC analysis of official data obtained through the Wind Wind database.

Because many YIWU products do not meet the EU execution standards, it limits how many businesses can sell Europe, Mong said. For example, Latin America’s demand has grown so much that Yiwu officials supported Spanish classes for local merchants.

But this is not just the question of replacement of the US orders.

“If you lose one big client in the US, you need about five in new markets to make the same stock,” Mong said. “It’s more work for less money.”

While in July this year, the total cost of China’s exports to the United States is $ 251.4 million – much higher than $ 116.5 million in the Middle East – Beijing also increased its supplies to Europe and Southeast Asia, which is now the largest regional partner in China according to official data. Chinese exports to Africa increased by 24% a year to July compared to a year.

“Some (a shift in the YIWU clients) is a hangover from the first (US-Chinese) trade war.

“This year, it is certainly very clear that suppliers turn to new, non-American markets. Especially on a scale because they are more stable, though they are slowing growth, ”he said.

Turning from the US

Little sign that YIWU traders will soon be selling the United States soon.

Participants in negotiations with the US and China met in Madrid this week for the last trade talks. But instead of announceing progress on tariffs, both sides only nominated “”Agreement “Frame” On the extended deprivation of Tiktok from the parent Byte. US president Donald Trump said he talk With the Chinese President Xi jinping Friday to refine the details.

For the enterprises, Approximately 55% US tariffs for most Chinese goods are still much higher than 25%they encountered during Trump’s first term. On the eve of their second inauguration in January, many US companies increased to orders to outperform the tariff.

This front load helped to support China’s exports – and stop the Christmas crisis.

The Costco retailer in the US has already sold festive jewelry when Johnson Tidalwave Solutions visited last weekend. “The only reason they would do it if they received it a few months before,” he said.

But planning can only go so far. He expects US companies to start raising prices over several months.

In addition, new fees affecting Chinese freight ships arriving in the US A strike of October 14 – with calculated fees potentially in millions of US dollars.

For a Chinese supplier that is faced with the growth of uncertainty, pressing another market can simply become a safer rate.

Nvidia probe is stretching. Against the backdrop of a high-level Madrid US-Kita conversation in Madrid stated on Monday that the product manufacturer in the United States violated Chinese antitrust law, and that an An The study will continue.

China’s economic slowing is rotating. In August, retail sales grew by only 3.4% Missing forecastsWhile investments in fixed assets in the first eight months of the year barely grew when the property dragged.

Shocked over the processed food. The XIBEI Fast Casual Network is in hot water after last week the online sign criticized the restaurant for the sale of expensive, pre-made dishes. The initial company The answer is annoyed by many consumers Further, as it has shown that industry standards for processed food are more free than many consumers thought.

Morale Hang the Index Ros 1.16% as of 11:15 local time. A Hang Seng Tech The index jumped by 2.89%.

Hong Kong stocks that are listed Bake As much as 14%increased as the company increases its artificial intelligence plans and partnerships. The stock at a firm based in Beijing, which holds the dominant position in the Chinese search engine market, received 9% for the night in trade.

End of September: The US Legislators are expected Visit Beijing In their first official trip since 2019