Shanghai steps up to help exporters explore domestic market

Shanghai, one of China's most important trade and financial hubs, on Friday organized a matchmaking event between local exporters and domestic e-commerce firms to help foreign trade companies shift to the Chinese market.

The event, organized by the Shanghai Municipal Commission of Commerce, marks the city's latest effort to support foreign trade companies amid global trade headwinds such as recent tariff hikes against many countries by the United States.

Sixteen leading domestic e-commerce platforms and nearly 80 foreign trade enterprises based in Shanghai participated in the event.

Many of the businesspeople coming to the event expressed optimism about tapping into the domestic market, though some acknowledged that the process could be challenging.

"Most of our orders came from the U.S. market. This is the first time we're connecting with some domestic e-commerce platforms, or even international ones. We do have confidence but going from 0 to 1 is always difficult. But at least, there is some hope. Even in a crisis, we can still see opportunities," said Chen Rui, deputy general manager of Shanghai Garment Group.

Young businesswoman Lu Yan brought a full bag of samples and product catalogs to the meeting. At an e-commerce booth, she demonstrated the functionality of vacuum-sealed storage bags.

"Talking about the impact of tariffs, our current estimate is that in the recent quarter, at least 1.5 million U.S. dollars' worth of orders have been canceled. Today I'd like to get in touch with all the e-commerce platforms. We didn't tap into the domestic market until now, and the domestic market itself presents a significant challenge for us," said Lu, who is the manager of the marketing department of Shanghai Real Trading Co.,Ltd.

During the event, e-commerce platforms presented various initiatives. For example, Taobao and Tmall, both under e-commerce giant Alibaba, have designated a "foreign trade selection" section, offering a streamlined process for export-oriented merchants to join the platform on the day of registration.

Online retailer Suning.com will implement a self-operated bulk sales model for high-potential products, such as robotic vacuum cleaners, smart coffee machines, wearable devices and pet care items.

On-demand retail service leader Meituan said it will help these enterprises facilitate access to both urban and rural consumers, leveraging its advantages in delivery services.

JD. come has allocated 200 billion yuan (about 27.4 billion U.S. dollars) toward purchasing commodities originally produced for export, and plans to host business engagement meetings in regions with clusters of export-oriented businesses.

"When we export-oriented companies faced difficulties in overseas sales, we immediately felt the support from the government and other domestic sales channels. I felt particularly warm and encouraged. Pivoting back to the home market could be a new endeavor, and perhaps we are facing great opportunities. It will actually help our company grow more, because our resilience has been strengthened," said Gu Keda, general manager of Shanghai Real Trading Co.,Ltd.

Shanghai's effort to secure the stable operation of foreign trade companies and stabilize employment aligns with the nation's call to boost consumption and expand domestic demand.

China will strengthen countercyclical adjustments and focus its efforts on stabilizing employment and foreign trade, as well as driving consumption and expanding domestic demand, according to a State Council executive meeting chaired by Premier Li Qiang on Friday.

Shanghai steps up to help exporters explore domestic market

Many Chinese logistics companies are ramping up their shipments for the U.S. market following the latest round of mutual tariff adjustments between China and the United States.

China and the United States announced in Geneva on Monday a series of tariff modification measures aimed at easing trade tensions between the world's two largest economies.

The decision followed a two-day China-U.S. high-level meeting on economic and trade affairs, where both sides recognized the importance of their bilateral economic and trade relationship to both countries and the global economy, a joint statement said, noting that both sides emphasized the need for a sustainable, long-term and mutually beneficial economic and trade relationship.

The latest measures have driven up the businesses of shipping companies in Shenzhen City, in south China's Guangdong Province.

In a freight forwarding company in Shenzhen, the manager said that U.S. clients are experiencing shortages of supplies and are pressuring them to expedite shipments on the next available vessels. The staff members are busy organizing export release documents, with stacks of paperwork for shipments to ports in Los Angeles, New York, and Chicago.

"Since the afternoon of May 12, our shipment volume has increased by 40 percent. By June, it should at least be doubled compared to now," said Fu Shengying, deputy general manager of Guangdong Branch of WorldEx Group.

Fuwei Community in Bao'an District, Shenzhen, is an important hub for cross-border e-commerce logistics. Recent data shows that the average daily export shipment volume here has increased by 14 percent over the past three days compared to May 11.

In another logistics company specializing in cross-border e-commerce, orders from U.S. clients have also surged. According to the company, these clients are facing low inventory and need to restock immediately. Over the past few days, the company has received more orders than during the same period in the previous years.

The company manager noted that the surge in order volume has led to increased demand for container ships. Consequently, some shipping companies are starting to adjust their capacity allocation on a global scale.

"Many shipowners had previously adjusted their capacity, but now that a large volume of cargo is suddenly coming in, there is a shortage of capacity. Consequently, freight rates are rising rapidly. Despite this, many clients are still very eager to ship their goods," said Luo Rong, general manager of Shenzhen Branch of Dewell Group.

Yantian Port in Shenzhen is the busiest shipping hub in South China for routes between China and the United States, handling over a quarter of the country's exports to the United States. To meet the surge in demand from U.S. clients, Yantian Port is now scheduling six daily sailings to the United States.

The port staff said that they have recently received inquiries from several shipping companies and are coordinating berth arrangements and schedules. They are prioritizing vessels for U.S. routes at Yantian Port.

Summer is the traditional Christmas ordering season in the United States, and due to previous export suspensions, American sellers' inventories have been declining and urgently need restocking. As a result, demand for Chinese goods is expected to keep rising in the near future.

Chinese logistics enterprises ramp up shipments after China-US tariff adjustment