Export-oriented factories and businesses in China are seeing a rebound in orders from their U.S. customers following the recent tariff reductions between the two countries.
A food processing company in east China's Jiangxi Province, which specializes in canned bamboo shoots, received orders from U.S. customers just 30 minutes after the announcement on tariff cuts.
"We received the order two days ago -- 1,000 boxes headed for Los Angeles and 900 for New York. There really aren't any substitutes for our bamboo shoot products in the U.S.," said Chen Zhixiang, manager of the company.
The company has also been expanding into European markets in recent weeks, according to Chen.
"Our products are now sold all over the world, reaching over 20 European Union member states in addition to the U.S. We are confident that we can supply our products to an even broader range of countries and regions," said Chen.
Local authorities have been supporting exports by streamlining customs clearance processes.
"Since May 12, we have received bookings for customs clearance service from over 100 foreign trade companies. We have established a number of customs clearance support teams to ensure a more convenient process so that goods can be exported more smoothly," said Huang Qifeng, a customs official at Nanchang City of Jiangxi.
In Shenzhen City, China's manufacturing hub, exporters are also reestablishing connections with their U.S. clients.
"The U.S. customers are thrilled about the tariff reductions and feel encouraged. They have asked us to ship the goods quickly since their inventory is depleting," said Wei Xiaoxuan, head of the packaging department at a Shenzhen foreign trade company.
"Our current inventory is about 30 percent above the usual level. Once the customer orders stabilize, we are confident that we can clear the excess stock within 90 days," said Cai Heping, head of the sales department at a Shenzhen new material company.
U.S. bookings for container shipments from China to the country have surged by nearly 300 percent following the announcement of a 90-day tariff pause by the two countries.
Data from container-tracking software provider Vizion reveals that average bookings for the seven days ending on Wednesday skyrocketed to over 21,000 twenty-foot equivalent units (TEUs), compared to about 5,700 TEUs just a week earlier.
Meanwhile, shipping companies including Matson, Evergreen and COSCO have announced price increases, raising rates by 500 to 1,500 US dollars per container.
Chinese exporters see rebound in US orders
