Core Viewpoint - The recent tariff conflict between China and the U.S. has prompted Chinese companies, particularly in Guangdong, to adapt their strategies to mitigate risks and explore new markets as a response to the changing trade environment [1][2]. Group 1: Company Responses to Tariff Changes - Companies like Kunyan Technology in Foshan have faced significant challenges due to their heavy reliance on the North American market, which accounted for over 80% of their business. The sudden increase in tariffs led to a halt in orders, prompting the company to seek new markets and diversify its customer base [2][3]. - Kunyan Technology has successfully reduced its North American customer base to less than 50% by actively engaging with clients from Brazil, Germany, the UK, and France, thus mitigating risks associated with the tariff conflict [3]. - Shenzhen Kairun Electronics has seen a 67% drop in the export volume of digital cameras due to increased tariffs, leading the company to optimize its supply chain and explore emerging markets to counteract the impact of policy changes [4][5]. Group 2: Strategic Adjustments and Innovations - Kairun Electronics is implementing strategic adjustments by enhancing contract terms to clarify delivery timelines and risk-sharing, as well as optimizing pricing mechanisms to remain competitive amidst tariff fluctuations [4][5]. - Dongguan's Wanle Toy Company has shifted its focus to domestic sales, signing a significant procurement order with JD Supermarket worth 50 million yuan, thus alleviating pressure from the U.S. market [6]. - The trend of "exporting to domestic sales" is gaining traction among companies, with many exploring local markets to reduce dependency on international trade [6]. Group 3: Global Expansion and Supply Chain Restructuring - Companies are increasingly adopting a "don't put all eggs in one basket" approach, diversifying their market presence to reduce reliance on single markets, as seen with Kunyan Technology's outreach to various countries [7][8]. - Many Guangdong enterprises are establishing manufacturing bases in countries like Mexico to minimize geopolitical risks and reduce tariff impacts while being closer to end markets [8][9]. - The shift towards global supply chain restructuring is evident, with companies considering Southeast Asia for production and sourcing opportunities [7][8]. Group 4: Brand Development and Localization - There is a growing emphasis on building strong independent brands as companies transition from pure OEM (Original Equipment Manufacturer) models to brand-oriented strategies, enhancing their market presence and pricing power [10][11]. - Companies are focusing on localizing their products and services to meet the preferences of different markets, which includes adapting product designs and establishing local service teams to improve customer satisfaction [11][12].

Core Insights - The recent reduction of tariffs on Chinese goods from 145% to 30% has led to a surge in orders from American clients, prompting Chinese companies to ramp up production and work overtime [1][7] - The CEO of Kunyan Technology, a leading laser radar company, expressed optimism about the increased demand and the potential for growth in the foreign trade sector [1][2] - The impact of the tariff changes has been significant for small and medium-sized enterprises (SMEs) in China, with over 5,300,000 SMEs contributing to more than 60% of the national GDP [2][3] Company Performance - Kunyan Technology and other foreign trade companies have experienced a busy period, with executives actively coordinating with American clients to manage increased orders [1][2] - The company faced challenges earlier in the year when tariffs rose from 34% to 245%, leading to a temporary halt in orders from a major American client [3][4] - Following the recent tariff reduction, there has been a notable increase in inquiries and orders from clients in various countries, including Brazil, Germany, and the UK [5][6] Market Dynamics - The 137th Canton Fair saw a mixed turnout, with fewer American clients present, but unexpected interest from international clients helped boost morale [5][6] - Despite the positive outlook, the overall order volume has not reached a "explosive growth" level, with many companies still in negotiation stages for OEM orders [7][8] - Shipping costs are expected to rise due to increased demand, with major shipping companies notifying clients of upcoming price hikes [7][8] Entrepreneurial Insights - The CEO of Kunyan Technology emphasized the importance of adaptability and diversifying market strategies, recognizing the need to not rely solely on overseas markets [9] - The recent experiences have highlighted the necessity for companies to improve their operational readiness and responsiveness to market changes [9] - The CEO remains focused on product quality and technological advancement, believing that many diligent Chinese factory owners can seize opportunities in the current environment [9]