China's small and medium-sized exporters have taken measures, including a shift to the domestic market, in response to U.S. abuse of tariffs, as the government has responded by offering support to export-oriented companies.
Fengshun, a hub of small and medium-sized exporters in south China's Guangdong Province, has been many of such cases.
More than 40 years ago, Fengshun started with the production of speaker accessories and gradually becomes home to nearly 700 small and medium-sized enterprises in the electro-acoustic industry.
Recently, many local companies have halted production and shipment for the U.S. market.
"We have more than 10 stranded containers at the port. Currently, the goods cannot be shipped out and we haven't got paid," said Chen Jiedong, financial director of Guangdong Wansheng Technology.
Chen said that exports to the U.S. account for about 40 percent of the company's output value, and that the value of the goods recently stranded at the port is 18 million yuan (about 2.47 million U.S. dollars).
He said that the company has decided to sell the stranded goods domestically, and began to use livestreaming to promote the items and sell them on e-commerce platforms.
"The progress is relatively smooth. Most of our containers have undergone a repainting, such as changing the outer packaging from English to Chinese. It is estimated that we can complete the conversion from export to domestic sales in 15 to 25 days," Chen said.
In addition to remedy adopted by companies themselves, the government has also intensified efforts to ease their stress.
Since the beginning of April, various departments in Fengshun County in Guandong have conducted surveys amongst enterprises on their production and operation.
In view of the potential financial challenges facing small and micro enterprises, the departments have guided banks to increase credit supply, and meanwhile encouraged the companies to apply for policy funds such as loans obtained through the issuance of ultra-long-term treasury bonds to accelerate industrial upgrading.
"As for equipment renewal, enterprises that meet certain requirements can apply for loans obtained through the issuance of ultra-long-term treasury bonds, and we will provide certain support in terms of interest rates," said Peng Xiaodong, director of Fengshun County Science, Industry and Commerce Bureau.
Chinese exporters shift to domestic market amid U.S. tariff pressure
