American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

JD.com, Freshippo step up to support struggling Chinese exporters tap domestic market amid US-China tariff war

by admin April 12, 2025
April 12, 2025
JD.com, Freshippo step up to support struggling Chinese exporters tap domestic market amid US-China tariff war

Chinese e-commerce companies are stepping up to help the country’s exporters tap the domestic market as the US-China trade war intensifies with both countries levying dizzyingly high tariffs against each other’s imports.

China’s e-commerce heavyweight JD.com announced on Friday it will set up a 200 billion yuan ($27.35 billion) fund to help domestic exporters pivot to local markets, as the conflict is weighing heavily on Chinese manufacturers.

Beijing retaliated against Washington’s latest tariff hikes by raising its own duties on US imports to 125% on Friday.

This escalation followed President Donald Trump’s decision to increase tariffs on Chinese goods to a steep 145%, the highest effective rate to date.

JD.com said it plans to dispatch staff directly to Chinese foreign-trade enterprises to source their high-quality products.

The company will also create a dedicated section on its platform to showcase these goods, promising to funnel traffic and marketing resources to boost their visibility among local consumers.

Alibaba’s Freshippo to have a special zone on its platform for exporters

In a parallel initiative, Alibaba’s supermarket chain Freshippo, known locally as Hema, announced similar measures to support Chinese exporters caught in the crossfire of the trade war.

The retailer said it would establish a specialised zone on its platform exclusively for products from export-focused companies.

Freshippo also pledged to simplify the registration process for these businesses and grant them access to its warehouse infrastructure, aiming to fast-track their entry into the domestic market.

While these programmes may help offset some losses from dwindling overseas demand, analysts caution that exporters will encounter fierce competition in an economy that is losing momentum.

Domestic demand struggles to absorb the excess supply

China’s efforts to redirect its export engine toward domestic consumers are hindered by persistently weak spending at home.

Fresh data released Thursday showed another dip in consumer price inflation, underscoring the challenges Beijing faces in stimulating demand.

“The Chinese domestic market can’t absorb existing supply, much less additional amounts,” warned Derek Scissors, senior fellow at the American Enterprise Institute.

He suggested that Beijing might resort to familiar tactics such as offering concessions to the US, offloading surplus goods to other countries, subsidising struggling firms, or allowing inefficient businesses to collapse.

Further complicating matters, Goldman Sachs on Thursday trimmed its forecast for China’s GDP growth to 4%, citing the twin pressures of global economic headwinds and the deepening trade spat with the United States.

Although exports to the US account for roughly 3% of China’s GDP, Goldman analysts estimate that 10 million to 20 million Chinese jobs are tied to these exports, amplifying the stakes for Beijing.

Beijing seeks to deepen ties with non-US partners to expand the market

China’s Ministry of Commerce confirmed this week that it had convened major business associations to explore measures aimed at boosting domestic consumption.

Meanwhile, policymakers are expected to roll out fresh incentives within days, including expanded subsidies under an existing trade-in scheme for home appliances.

On the international front, Chinese companies are increasingly shifting their focus to other markets.

Textile firms, for example, are moving production to Southeast Asia and beyond.

“This year, we are developing customers in Southeast Asia, Latin America, the Middle East, and Europe to reduce our reliance on the US market,” said Zhao from Green Willow Textile in a CNBC report.

Chinese President Xi Jinping is scheduled to visit Vietnam, Malaysia, and Cambodia next week in a bid to deepen regional economic ties.

Trade with Southeast Asia has surged since 2019, making it China’s largest trading partner, followed by the European Union and the US, according to Chinese customs data.

The post JD.com, Freshippo step up to support struggling Chinese exporters tap domestic market amid US-China tariff war appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
US stocks open lower: Dow down 240 points, S&P slips 0.4%
next post
Renault stock price: insulated from trade war, but risky pattern forms

Related Posts

CAC 40 index hits key price as LVMH,...

September 27, 2024

American Airlines raises bag fee by $10 for...

February 21, 2024

South Korean officials raise alarms over DeepSeek AI...

February 6, 2025

Vodafone share price rally has stalled: buy, sell,...

October 16, 2024

Here’s why the Unicredit share price is beating...

December 6, 2024

Nio stock price may surge 75% in 2025:...

February 17, 2025

India’s Adani Green appoints law firms to review...

January 24, 2025

Avoid MicroStrategy stock and buy MSTX and MSTU...

December 5, 2024

Hims & Hers Health says it will offer...

May 23, 2024

Asian markets open: Nikkei down 0.14%, Kospi up...

June 20, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Why Thailand’s economic recovery may not be straightforward

      July 6, 2025
    • Why the US job market may actually crumble soon

      July 6, 2025
    • China spares major French cognac makers from tariffs in brandy dispute

      July 6, 2025
    • Berlin seeks Patriot Missiles for Ukraine amid US supply strain: report

      July 6, 2025
    • Donald Trump to send warning letters as 70% tariff threat looms

      July 6, 2025

    Categories

    • Business (3,314)
    • Investing (2,587)
    • Latest News (2,011)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved