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Chinese shoe factory navigates US tariff turbulence through close partnership

China

China

China

Chinese shoe factory navigates US tariff turbulence through close partnership

2026-05-13 17:18 Last Updated At:05-14 12:51

A shoe factory in Wenzhou City, east China's Zhejiang Province, has been working closely with its American partners to weather the sharp ups and downs in US tariff policies over the past year.

The city of Wenzhou is home to thousands of shoe factories, many of which focus on exports. About 1 in 12 pairs of shoes worldwide are made in the city.

Xuda Footwear in Wenzhou City, which manufactures for several major U.S. brands, saw its US orders drop about 40 percent year on year after tariff hikes began last year, according to vice general manager Lin Zhihua.

Then, despite widespread criticism and high volatility in U.S. stock markets after tariff hikes, last April, the White House clarified that the total effective tariff rate on Chinese imports had climbed to 145 percent.

The uncertainty prompted American clients to make practical adjustments. Yuan Weimin, head of Xuda Footwear's foreign trade department, said that clients asked the factory to leave retail prices blank on shoe tags, as final shelf prices in the U.S. remained unpredictable.

"The client felt the tariffs were going up and down, and were very unstable. So they started making some adjustments. For example, on the shoe price tags, we used to print the retail price. But they asked us to remove the price and just leave it blank," said Yuan Weimin, head of the foreign trade department of Xuda Footwear, as the sale price would probably be different when the shoes appeared on the U.S. shelves for customers.

Yuan said the uncertainty was also hitting the factory hard. While fearing last-minute order cancellations, Xuda continued production at the urging of its U.S. partners, who worried that halting orders would quickly empty American store shelves.

Some Americans showed solidarity with Chinese partners and chose to shoulder the risk of keeping things running. In one case, an American client paid for a large order but requested that the shoes not be shipped amid the high tariffs.

The moment of relief came in May, 2025. China and the United States reached a temporary agreement in Geneva, with U.S. tariffs on Chinese goods dropped from 145 percent to around 30 percent.

"By the end of June, production was back at scale. Because a 145 percent tariff isn't really workable for anyone," said Yuan.

Looking back on last year's turbulence, Lin said both he and his U.S. clients and partners were feeling stressed.

"It was a stressful time. Things were very unpredictable. Not just for us, but for the trading companies and the US clients too. Everyone was anxious," Lin said.

At the invitation of Chinese President Xi Jinping, U.S. President Donald Trump will pay a state visit to China from May 13 to 15.

Lin said he is looking forward to the U.S. president's visit.

"I'm actually looking forward to it. Him coming to China is in itself a sign that things might look up," said Lin.

Chinese shoe factory navigates US tariff turbulence through close partnership

Chinese shoe factory navigates US tariff turbulence through close partnership

As the 18th BRICS Summit is underway in New Delhi this weekend, international journalists covering the event have stressed China's indispensable role in strengthening the grouping and amplifying the voice of the Global South.

The summit, held in India's capital from Saturday to Sunday under the theme "Building for Resilience, Innovation, Cooperation and Sustainability," has gathered leaders from 11 full member states, 10 partner countries, and invited guests.

This year marks the 20th anniversary of the BRICS cooperation mechanism, which has grown into the most influential platform for cooperation among emerging markets and developing countries.

"[When] President Xi, he said that we have to be together whether it's rain or a wind, I mean that has a sense of respect even though we are a small country compared to China. We would love to see China play a bigger role," said Firdaus Azil, a journalist from Malaysia.

International journalists covering the summit in India noted that China's consistent commitment to inclusiveness and equitable cooperation within BRICS has left a deep impression on observers from developing nations.

"I see it [BRICS] as a formidable force that is driving development. For me, I believe that China plays a huge role in BRICS," said Sarafina Christopher, a journalist with the News Agency of Nigeria.

The recurring descriptors - "huge," "bigger," and "important" - used by international journalists to characterize China's role in BRICS reflect what China has been tangibly delivered through two decades of sustained engagement with the grouping.

China has consistently championed a more equitable global governance system that gives the Global South a stronger voice.

From the BRICS spirit of openness, inclusiveness, cooperation and win-win progress in 2014, to BRICS+ in 2017, to the greater BRICS cooperation in 2024, and in 2025 when the Chinese president made three proposals to foster synergy for common development, each step has refined the approach to make it work.

With China set to assume the BRICS rotating presidency in 2027, all eyes will be on how the country builds on this momentum to further strengthen the grouping and advance the shared aspirations of the Global South.

International journalists highlight China's pivotal role in BRICS cooperation

International journalists highlight China's pivotal role in BRICS cooperation

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