As U.S. tariffs fluctuate, placing pressure on Chinese exporters, manufacturers in south China's Guangdong Province have shown resilience through diverse strategies and innovation.
Kobe Leather, a Guangzhou-based company, is an example. The company was founded in 2008, with its entire business built on exports. Earlier this year, tariffs almost halted its production.
"When the tariffs reached over 100 percent, our exports essentially came to a halt, and all the goods stayed in the warehouse. The customers couldn't bear these costs, and our factory also couldn't afford the high tariffs," said She Chunhui, Vice President of the company.
This is the second time the company has been hit. The initial tranche of U.S. tariffs under the Trump administration around 2018 reduced its export percentage to 70 percent.
Like many other entrepreneurs in Guangdong, the company began to seek to diversify its business. Turning to the domestic market is a common choice for many manufacturers in Guangdong.
"We used to have a great portion of U.S orders and European orders. When I joined the company, it was almost 80 percent U.S. plus European orders. And then, going into 2018, the trade war (began). So we started to ship our orders to domestic [customers], and in the meantime to raise our own retail brands. The proportion of it, sometimes it would be the other way around, like almost 80 percent of the orders are domestic orders. Almost zero U.S. orders," said Wayne Cai, Vice President of Foshan-based Esquel Group Brands and Retailing.
The transition is not an overnight process and has faced numerous headwinds, but it has proven wise, as the so-called Trump 2.0 tariff is again undermining global trade this year.
The manufacturers in Guangdong are not only diversifying their exports but also investing in research and development, as well as branding.
For Canton Unicorn Group, another high-end leather bag manufacturer in Guangzhou, their strategies include diversifying production, establishing factories in Indonesia and Bangladesh, and, more importantly, diversifying their innovation.
"We have a team of about 17 or 18 designers who focus on making our products more comfortable and better suited to our users' needs, which will help us grow our market share. Our main goal is to keep coming up with new ideas, so our products become an important part of people's daily lives. That's the purpose of our design work," said Zhang Xuanhao, General Manager of the Canton Unicorn Group.
Despite the potential political uncertainty, many Guangdong companies believe they can improve their businesses in the second half of the year, having learned to navigate headwinds through innovation, diversification, and flexibility.
Guangdong manufacturers navigate U.S. tariff blow with diversification, innovation
The U.S. military strike against Venezuela and capture of its president, Nicolas Maduro, has shocked the international community, triggering a steady stream of condemnation and serious concerns worldwide.
Brazil, Chile, Colombia, Mexico, Uruguay and Spain issued a joint statement on Sunday, expressing serious concern about and firm opposition to the U.S. unilateral military operations in Venezuela.
The U.S. actions contravene fundamental principles of international law, particularly the prohibition on the use or threat of force, and respect for the sovereignty and territorial integrity of States, as enshrined in the UN Charter, constituting an extremely dangerous precedent against peace and regional security, according to the statement.
In expressing profound concern and firm rejection, the six countries stressed in the statement that the situation in Venezuela must be resolved exclusively by peaceful means, and through dialogue, negotiation and respect for the will of the Venezuelan people in all its expressions, without external interference and in accordance with international law.
Only an inclusive political process, led by Venezuelans, can lead to a democratic, sustainable solution that respects human dignity, according to the statement.
Spanish Prime Minister Pedro Sanchez condemned the U.S. raid in Venezuela as a violation of international law, adding that the Spanish government always advocates and defends international law and peaceful resolution of conflicts.
Addressing a meeting of the Community of Latin American and Caribbean States (CELAC), Cuban Foreign Minister Bruno Rodriguez demanded the unconditional and immediate release of Maduro and his wife.
Noting that Latin America and the Caribbean are a zone of peace, he expressed his firm opposition to the use of force, which is an unshakable principle.
Any aggression against Venezuela shall be regarded as an attack against all CELAC member states, and nations must collectively oppose it, he stressed.
The South African government denounced the U.S. attack on Venezuela as a violation of international law, according to a statement released on Sunday.
History has repeatedly demonstrated that military invasions against sovereign states yield only instability and deepening crisis, the statement said.
South Africa calls on the UN Security Council to urgently convene a session to address this situation, according to the statement.
Serbian President Aleksandar Vucic said what happened in Venezuela demonstrates that international law and the UN Charter are losing their practical effectiveness.
U.S. military action against Venezuela marks a dangerous precedent, as similar actions could be taken against any other nations, he said.
In addition, the foreign ministries of Namibia, Singapore, Oman and Pakistan also issued statements on the same day, expressing grave concern over U.S. interference in Venezuela's internal affairs.
They emphasized the need to uphold international law and the principles of the UN Charter while respecting Venezuela's sovereignty.
They also called on all parties to exercise restraint and resolve the crisis through peaceful dialogue.
U.S. move against Venezuela sparks condemnation, concerns worldwide
