Core Viewpoint - Yiwu, known as the world's largest small commodity distribution center, is facing challenges due to the US-China tariff war, impacting various foreign trade enterprises differently based on their reliance on the US market [1][24]. Group 1: Impact of Tariffs on Businesses - Yiwu International Trade City hosts over 70,000 merchants, with more than 3,000 engaged in trade with the US, indicating a significant portion of the local economy is affected by US tariffs [1]. - Merchants with a lower dependency on the US market, such as those with around 10% of sales from the US, report manageable impacts due to diversified orders from other regions like Southeast Asia and Africa [1][5]. - Conversely, businesses heavily reliant on the US market, such as those with over 50% of sales from the US, face immediate challenges, needing to find alternative markets quickly to mitigate losses [10][14]. Group 2: Adaptation Strategies - Merchants are actively diversifying their product offerings and markets, with some introducing numerous new products to cater to varied international demands [3][15]. - Companies are focusing on enhancing their internal capabilities, such as digital transformation and automation, to improve efficiency and reduce costs in response to tariff pressures [21][23]. - Yiwu's businesses are leveraging the "Belt and Road" initiative to expand into new markets, with significant trade volumes reported with countries involved in this initiative [20][24]. Group 3: Brand Development and Market Positioning - There is a growing emphasis on developing independent brands to escape the low-price competition and gain pricing power in the market [24][30]. - Companies like those in Yiwu are increasingly recognizing the importance of establishing their own brands to enhance product quality and market presence, moving away from being mere OEMs [26][28]. - The Yiwu Customs has introduced initiatives to support brand development, with a notable increase in brand registrations, indicating a shift towards a more sustainable and high-quality export model [30].

Core Viewpoint - Yiwu, known as the "world's small commodity capital," is facing challenges due to the US-China trade war, impacting its foreign trade businesses and prompting them to adapt to new market conditions [1][18]. Group 1: Impact of Tariffs on Businesses - Yiwu International Trade City hosts over 70,000 merchants, with more than 3,000 engaged in trade with the US, indicating a significant reliance on the American market [3][8]. - Some merchants, like Mao Yeqiang, report that the US market accounts for about 10% of their sales, while others with higher dependencies are feeling the pressure from increased tariffs [5][10]. - Despite the challenges, some businesses continue to receive orders from US clients, highlighting the competitive pricing of Yiwu's small commodities [7][10]. Group 2: Adaptation Strategies - Businesses are diversifying their markets, with some shifting focus to Southeast Asia and other regions to mitigate the impact of US tariffs [5][12]. - Companies are exploring digital transformation and upgrading production processes to enhance efficiency and reduce costs, with one firm reporting a potential 40% increase in production efficiency through digital upgrades [17][19]. - Yiwu's trade with "Belt and Road" countries has surged, accounting for over 66.8% of its total trade value in the first quarter of the year, demonstrating a strategic pivot towards these markets [18][24]. Group 3: Brand Development and Market Positioning - The importance of establishing independent brands has been emphasized, as many businesses lack pricing power and face challenges due to the tariff situation [21][23]. - Yiwu is actively promoting its "Yiwu China Small Commodity City" brand overseas, with initiatives already implemented in over 20 countries to help local businesses expand their international presence [24].