Chinese exporters seek new markets to offset US tariff – and government ramps up stimulus measures
Key to seeking new markets to offset US tariff are trade fairs, where many can showcase their products and create sales channels to offset tariff impacts, with the end goal of finding other opportunities beyond traditional markets like the US. Chinese exporters have begun seeking new opportunities to tap into global markets in the face of the ongoing trade war with the United States.
Of the several trade fairs, two major trade fairs—the Canton Fair and the China International Consumer Products Expo (CICPE)—serve as key platforms for businesses.
The booths of this year’s Canton Fair in the southern Chinese metropolis of Guangzhou, Guangdong Province, are highly sought after among Chinese exporters hoping to build new business relationships in alternative markets.
“We will surely expand our markets abroad besides the United States. This product is a key focus at present. It has up-to-date functions. Clients from Poland and the Netherlands wanted to sign an exclusive distribution agreement with us right here,” said Tang Shousheng, an exhibitor.
Beyond sales expansion, Chinese exporters are also investing in overseas production facilities to strengthen their presence in global markets.
“We plan to invest 10 million yuan (about 1.37 million U.S. dollars) in building overseas factories. In fact, we have already found local suppliers for essential components such as plastics, SMT (surface-mount technology) patches, and packaging materials like colour boxes,” said Huang Shuyu, an exhibitor.
Organisers of the Canton Fair say around 31,000 firms are participating in this year’s fair, which runs till 5 May, up by nearly 900 compared with the previous one.
At the just-concluded CICPE, many Chinese exporters tried to diversify their brands and supply chains, hoping to ensure they remain resilient in an unpredictable trade environment.
Some businesses are introducing proprietary brands tailored to specific international markets and to expand their domestic market share.
“We started to launch our own brands last year, and these products have performed very well in the Russian market,” said Ran Yan, an exhibitor.
Despite the trade disruptions, many exhibiting businesses remain committed to global expansion “We have not given up the global industrial layout in terms of our overall brand strategy,” said Li Rongsheng, said one exhibitor.
The US and China are locked in a trade row that has seen Washington impose tariffs of more than 145 percent on Chinese goods entering the US.
In March, China’s exports jumped 12.4% from last year in a last-minute flurry of activity as companies rushed to beat increases in the tariffs, and analysts forecast sharp setbacks.
China’s first-quarter economic growth beats estimates as tariffs loom
China’s economy grew by 5.4% in the first quarter, surpassing analysts’ expectations. Other key economic data has also topped estimates, suggesting the stimulus measures have been effective in bolstering the world’s second-largest economy. However, its economic outlook remains uncertain.
China’s Gross Domestic Product (GDP) grew by 5.4% year-on-year in the first quarter, surpassing analysts’ expectations of 5.1%, marking the strongest pace in one and a half years. However, the economic outlook remains uncertain due to mounting pressures from Trump’s tariffs.
“With the continued implementation and effectiveness of various macroeconomic policies, the national economy has made a steady start and had a good beginning to the year,” stated China’s National Bureau of Statistics (NBS). However, the agency also highlighted the challenges ahead: “The current external environment has become increasingly complex and challenging, while domestic effective demand lacks sufficient momentum. The foundation for the continued economic recovery and improvement still needs to be strengthened.”
Retail sales are seen as a key gauge of China’s economic trajectory. The country continues to grapple with sluggish domestic demand, stemming from housing market woes and the lingering effects of the pandemic. In response, China lowered its inflation target from 3% to 2% for 2024 and introduced measures such as government subsidies and initiatives to raise household income in an effort to boost consumer spending.
Additionally, China’s fixed asset investment—covering sectors such as real estate, infrastructure, and manufacturing—rose 4.2% in the first three months. However, property investment fell by 9.9%, underscoring ongoing fragility in the housing market. The unemployment rate declined to 5.2% in March from 5.4% in the previous month.
China ramps up stimulus measures to bolster economic growth
Beijing has unveiled further stimulus measures to bolster the economy as trade tensions with the United States escalate. At its annual government meeting in January, China set an economic growth target of 5% for 2025, while raising its budget deficit to 4% of GDP—the highest in three decades—aligning with the “highly proactive” fiscal stance previously announced. The strong momentum in first-quarter growth suggests these stimulus measures may be starting to take effect.
Other major economic indicators also exceeded estimates in March, ahead of Trump’s imposition of 145% tariffs on goods from China. Industrial output expanded by 7.7% year on year—beating the forecast of 5.9%—and marked the fastest pace since June 2021. Meanwhile, retail sales rose 5.9%, well above the 4.3% projected by economists, and represented the strongest increase since December 2023.
Source: Euro news