INSUBCONTINENT EXCLUSIVE:
As the United States government escalates its tariff campaign, disrupting global trade and straining Chinese exports, China, as the world's
second-largest economy, is well-positioned to weather the storm, leveraging agile policy tools and the strength of its vast domestic
market.In September last year, CPC leadership the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting
to assess the economy and make further arrangements for future economic work.Since then, authorities have introduced a series of targeted
macroeconomic measures, including cuts to the reserve requirement ratio, reductions in mortgage rates, efforts to channel long-term capital
into the markets, and the issuance of ultra-long-term special treasury bonds to boost the economy.These moves have delivered tangible
According to the National Bureau of Statistics, China's total retail sales rose 4.6 percent year-on-year in the first quarter of 2025, 1.1
percentage points higher than the annual figure in 2024
The manufacturing Purchasing Managers' Index (PMI) climbed to 50.5 percent in March, marking two straight months of expansion, while the
services activity index stood at 50.3 percent
Furthermore, the country's GDP grew by 5.4 percent in Q1, surpassing market expectations.Domestic demand: A powerful bufferDespite mounting
export uncertainties, China's domestic market has provided a critical safety net
Official data shows that in 2024, around 85 percent of the country's export-oriented firms sold products domestically, with domestic sales
accounting for roughly 75 percent of their total revenue.To ease the shift from exports to domestic sales, the government and industry
groups have worked to remove regulatory bottlenecks
And major retailers such as JD.com, Freshippo and Yonghui Superstores have also opened fast-track channels to help foreign trade firms sell
to Chinese consumers.One example is Zhuhai-based Jindao Electrics, a beauty appliance company whose products, like hair straighteners and
facial steamers, are popular on platforms like Amazon
Following a drop in United States orders due to rising tariffs, the company began pivoting to the domestic market and they reached out to
JD.com, which helped the firm develop a tailored transition strategy."We've provided guaranteed purchase agreements and integrated our
platform's on-site traffic, marketing resources, and distribution channels to accelerate their domestic sales push," said Chen Yu, head of
JD's beauty appliances business
On April 11, JD.com announced plans to procure over 200 billion yuan (about $27.4 billion) worth of export-to-domestic goods in the coming
year to support firms like Jindao Electrics.According to He Yadong, spokesperson for China's Ministry of Commerce, as of April 23, nine
major Chinese e-commerce platforms have opened expedited onboarding channels for export-oriented enterprises with over 600 companies joining
these platforms.Tapping new markets: A strategic rebalanceBeyond bolstering domestic demand, Chinese exporters are also actively pursuing
market diversification, especially with Global South countries
The shift has gradually reduced China's dependence on the United States market.Official data shows that the United States share of China's
total exports has declined significantly, from 19.2 percent in 2018 to 14.7 percent in 2024
By contrast, many United States industries, including both consumer products and key manufacturing inputs, are deeply reliant on Chinese
For several categories of goods, the United States depends on China for over 50 percent of supply, making it difficult to find alternative
sources in the short term.China is now a major trading partner for more than 150 countries and regions
Since 2018, the share of China's exports going to ASEAN has risen from 12.8 percent to 16.4 percent, while exports to Belt and Road
countries have jumped from 38.7 percent to 47.8 percent
And, these markets continue to see strong growth.Yueli Group, a leading Chinese manufacturer of hair dryers, has steadily diversified its
markets since 2018 after the United States started a trade war with China during Donald Trump's first term in office
According to its marketing director Li Lizhong, United States sales now account for less than 20 percent of Yueli's business
Instead, the firm has seen growing demand from Japan, South Korea, the Middle East, and Europe.Yueli has also expanded its domestic market
by working with homegrown brands to design high-quality, affordable, and visually appealing products tailored to Chinese consumers
"Over the past few years, we've seen consistent annual growth of over 30 percent," Li told CMG
"This has helped us effectively reduce the risks of relying too heavily on foreign markets."He added that China's manufacturing strength
lies not only in its factories but also in its complete industrial ecosystem, a competitive advantage that is hard to replicate
globally.Ports, often viewed as a barometer of foreign trade activity, have reflected the resilience of Chinese exports.According to the
Ministry of Transport, in the first quarter of 2025, China's port cargo throughput increased by 3.2 percent year-on-year, with domestic and
foreign trade growing by 4.1 percent and 1.4 percent respectively, highlighting the strength of China's dual circulation strategy, which
emphasizes internal economic vitality while continuing to engage with global markets.
