Chinese trade turns away from us, even in Yiu

This report from CNBC newsletter in CNBC for this week, which brings you visions and analyzes about what leads the second largest economy in the world.

Three young boys eaten on the elevator joined me inside the five -storey international trade market, which is shipped The majority of Christmas in the world Decoration.

Children ran out before I leave. There were more children of buyers when I visited what was one of the largest wholesale market in the world in late August, just days before the end of the summer vacation in China. The LEGO pieces are located at the entrances to the store, while the mobile stairs – signs said they are “for the safety of children.”

Whether on the morning of the day or afternoon, the legendary Yiwu market – which has a reputation of being a “world supermarket” – was unexpectedly quiet.

Was the United States and China’s commercial war touched?

Li, a sponge seller and cleaning supplies, claimed that he was not the peak season for foreign buyers, and that his customers were from the Middle East and Southeast Asia – not the United States

He told me, who refused to be the impact of the definitions, which was not large, who refused to participate his full name. But he hinted that the factories in the original Qanjdong Province were more difficult.

I repeated the silence I faced during my visit to Yiwu. None of the dozens or so agreed from other companies that they spoke to them to conduct interviews with them.

But it was clear that their customer base had turned. I have monitored more signs in Arabic, sometimes Korean or Russian, instead of the usual English and Chinese. Large areas of one -storey sale were focused on the veil or veil.

Ashish Monga, founder of IMEX Sourcing Services, said that exports to the United States from Yiwu have slipped from about 20 % before eight years to 15 % last year, and they are now less.

The decline in Yiwu exports to the United States reflects a national decrease. China’s exports to the United States decreased by 12 % for this year until July, while exports to 10 largest economies In the Middle East, it increased by 13 % during that same period, according to the CNBC analysis of the official data reached through the wind information database.

Monga said that many Yiwu products do not meet the compliance standards of the European Union, as this limits the amount of companies that they can sell to Europe. On the other hand, the demand from Latin America grew, for example, to the extent that Yiwu officials supported the Spanish classes of local merchants.

But it is not just the issue of replacing the orders of the United States.

“If you lose a big agent in the United States, you need about five emerging markets to make the same margin,” said Monga. “It is more work for less money.”

While the total value of China’s exports to the United States, as of this year, is $ 251.4 million – much larger compared to $ 116.5 million to the Middle East – Beijing has also escalated its shipments to Europe and Southeast Asia, which is now the largest regional trading partner in China according to official data. Chinese exports to Africa for the year until July increased by 24 % from last year.

“Some (the transformation of Yiwu customers) is the first war waste (the United States of China). They don’t want to be full of states,” said Cameron Johnson, a great partner in Shanghai at Tidalwave Solutions.

“It is very clear this year that suppliers are turning into new non -American marketsand Widely, because they are more stable, although they are in slower growth rates. “

Stay away from the United States

There is a small sign that Yiwu merchants will find that it is attractive to selling to the United States again.

Negotists from the United States and China in Madrid met this week to attend the last round of commercial talks. But instead of announcing the progress of the definitions, only both sides are highlighted.Frame “Agreement On the Part -based Tiktok investment from Beijing. US President Donald Trump He said it is Appointment to speak With the Chinese president Xi Jinping Friday to finish details.

For companies, About 55 % American definitions on most Chinese goods are still much higher than the 25 % average that they faced during Trump’s first period. Before its second opening in January, many American companies rose orders to apply for the increasing tariffs.

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

Costco retail store in the United States was already selling holiday decorations when Johnson visited Tidalwave Solutions during the weekend. “The only reason they will do is if they got it within a few months,” he said.

But planning cannot go further. It is expected that American companies will start raising prices significantly within a few months.

In addition, the new fees that affect the Chinese Chinese shipping ships that reach the United States will start, even if they are not owned by China, will start, He kicked on October 14th – With the estimated fees It is likely to be millions of US dollars.

For the Chinese resource that faces increased uncertainty, clicking on a different market may be the safer bet.

Nafidia probe continue. Amid high -level talks between the United States of China in Madrid, Beijing said on Monday that the American chip maker violated the Chinese anti -pregnancy law, and that it was The investigation will continue.

Chinese economic slowdown slope. Retail sales grew by only 3.4 % in August, Lost expectationsWhile investing the fixed assets for the first eight months of the year hardly grown with the deterioration of real estate withdrawal.

Understanding the processed food. The fast xibei series in hot water after a celebrity online criticized last week the restaurant to sell expensive dishes. The initial company Response angered many consumers Moreover, it also revealed that industry standards for manufactured foods are more flexible than many consumers believe.

CSI 300 increased in China by 0.47 %, while Hong Kong Hang Singh Fahress 1.16 % rose from 11:15 am local time. the Hang Singh Tech The index jumped 2.89 %.

Hong Kong stocks listed Bido It increased to 14 % as the company intensifies artificial intelligence plans and partnerships. The shares of the Beijing -based company, which occupies a dominant location in the search engines market in China, has gained 9 % overnight in the United States.

Late September: It is expected that the legislators of the US House of Representatives are expected Visit Beijing On the first official trip since 2019