Robust industrial chains steer Chinese companies through tariff challenges

Zhejiang Province, east China: Chinese companies in Ningbo, a key export hub in east China's Zhejiang Province, are relying on resilient industrial chains to counter the economic challenges posed by U.S. tariffs.

AI Brief

Ningbo exports to the US make up over 20% of its total trade, highlighting the citys vital manufacturing role.
New US-China tariff adjustments have restarted production lines for export companies like Ningbo Yuanjun.
Local firms stay competitive by streamlining supply chains, innovating products, and improving service quality.

With a trillion-yuan economy, Ningbo remains a vital player, recording U.S. exports accounting for over 20 percent of its total in 2024. Amid these pressures, Professor Hu Qiuguang from Ningbo University has been tracking over 20 local export companies to understand the tariffs' effects.

"Ningbo is primarily a manufacturing city with a very complete industrial chain. Each link in the supply chain has supporting suppliers. This is a very important advantage, especially as Ningbo's exports to the United States accounted for over 20 percent of its total exports in 2024," said Hu.

Following the announcement of new tariff adjustment measures aimed at easing trade tensions between China and the United States, production lines at Ningbo Yuanjun Import and Export Company have resumed operations for U.S.-bound goods.

The company's flagship products, DIY toys, have won praise from international buyers.

"This is really great. Yes, one of the top. I think you're one of the top in Ningbo that I've seen so far," said a Dutch buyer.

Yan Gang, the company's procurement manager, said their success lies in the efficiency and integration of the regional industrial supply chain.

"For example, these beads are injection-molded here in Ningbo, then sent to a plating factory in Quzhou for electroplating, and finally to a spray-painting factory in Yiwu for coloring," said Yan Gang, procurement manager of Ningbo Yuanjun Import and Export Company.

To maintain market competitiveness, the company has been focusing on innovation, enhancing product quality, and improving customer service.

"Our foreign clients are visiting and inquiring about prices everywhere. For us, the key is to maintain the best quality and service," said Yu Erer, production manager of the company.