When reporter Zhu Zhu touched down in Wenzhou on June 3, 2025, the city's factories were buzzing with a mix of excitement and caution. Just 11 days earlier, the US and China agreed to a temporary halt on their tit-for-tat tariffs. For this manufacturing hubcelebrated for its shoes and electrical partsit was a rare moment of clarity amid months of volatility.
Factory Floors Find a Moment's Breathing Room
Wenzhou's small workshops and large assembly lines alike have felt the squeeze of rising duties on exports. As tariffs climbed last year, orders from North American buyers slowed, forcing some companies to delay production or explore alternative materials. But the recent tariff pause has allowed private firms to recalibrate. Local entrepreneurs report a rebound in inquiries, giving them the chance to secure new contracts and test innovations without the drag of steep fees.
Pivoting to Digital and Diversified Markets
Beyond the factory floor, many businesses are doubling down on digital sales channels. By strengthening online storefronts and tapping into e-commerce platforms across G20 markets, Wenzhou's manufacturers are aiming to cushion against future shocks. Simultaneously, partnerships are forming with distributors in southeast Asia and Europe, signaling a more diversified export strategy.
With US-China negotiations set to resume, the path ahead is still winding. Yet for now, Wenzhou's private firms are using the tariff truce as an opportunity: to streamline operations, embrace new technologies, and reimagine their place in the global supply chain. Whether the pause holds or evolves into a longer-term deal, this city's entrepreneurs are proving that agility and innovation can thrive even when the trade winds shift.
Reference(s):
BizFocus Ep.129: Wenzhou private firms navigate US tariff uncertainty
cgtn.com
