As the Trump administration's tariff war hurts Chinese exports, a shoemaker in east China's Zhejiang province is adjusting its market strategy swiftly, shifting to other global markets to offset trade turmoil and challenges.
Zhang Wenjie, the founder of the shoe-making company based in Zhejiang's Wenzhou, revealed that he resolutely declined recently a U.S. client who exploited market conditions and asked for his products at half the price.
Zhang started his company in 1993 and now produces 10 million pairs of shoes annually with over 2,500 employees. Seventy percent of Zhang's business has been for export, with the U.S. as a traditional key market.
In recent years, the company has diversified to new markets, and the latest U.S. tariff hikes are pushing him to do more.
"Our orders from the U.S. have dropped by more than 30 percent, which will undoubtedly have an impact, but I believe this impact will be short-lived," Zhang said. "Just like in recent days, we've received substantial orders from Portugal and Spain."
The order from Portugal, worth over 20 million yuan (over 2.7 million U.S. dollars), helped buffer the blow to his operations and gave him new encouragement.
"We've established subsidiaries in Dubai and Russia. We are expanding into markets in Australia and Southeast Asia. It is an essentially part of our global strategy," Zhang explained.
Zhang and his team are preparing for the third phase of the 137th Canton Fair from May 1 to 5, where they hope to secure new orders and continue penetrating international markets.
Chinese shoemaker seeks foothold in alternative markets amid US tariffs
