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Trump’s Tariffs Put China’s E-Commerce Superpowers to the Test

The New York Times's profile
The New York Times
5h ago

Amidst the challenges posed by U.S. tariffs, Chinese e-commerce giants like Alibaba are actively working to help small businesses find new markets beyond the United States, which remains their largest export market. The Chinese government and companies are intensifying support for these businesses to pivot towards non-American markets, offering legal assistance and training to navigate the changing landscape. Entrepreneurs express determination to continue their international business efforts, recognizing the need to adapt by exploring markets in Europe and Southeast Asia and by offering specialized products. Despite potential revenue declines, the resilience and adaptability of Chinese e-commerce are highlighted as they navigate the complexities of global trade tensions. This situation underscores the broader theme of China's economic rise and the strategic shift required to sustain growth in a competitive and politically challenging environment.

Trump’s Tariffs Put China’s E-Commerce Superpowers to the Test

Alibaba hosted a conference in Hangzhou to address the impact of U.S. tariffs on Chinese e-commerce, emphasizing resilience and exploring markets outside the United States, which constitutes over a third of their online trade.

The Chinese government supports this transition by offering tax breaks and encouraging the development of related academic majors, while cities like Hangzhou provide discounted office spaces to e-commerce entrepreneurs.

Business owners like Qiu Leisi plan to pass tariff costs onto American consumers, while exploring alternative markets such as Europe, highlighting a strategic shift in response to political and economic pressures.

Entrepreneurs like Shawn Zhao are adapting by focusing on customized products and reducing advertising budgets in the U.S., despite expecting significant revenue drops due to tariffs.

Some sellers propose redirecting goods through third countries to evade tariffs, but face challenges as some nations, under U.S. pressure, vow to curb such practices.

The domestic market's hypercompetitiveness and slowing economy push Chinese businesses to look overseas, despite the complexities and time required for this transition.

The resolve to pursue international business opportunities remains strong among Chinese entrepreneurs, driven by the necessity to sustain growth amid shrinking domestic market shares and global trade uncertainties.

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