New global markets, sales methods emerge from smoke of U.S. tariff war

With duties having varying impacts on products, Chinese exporters look to alternatives

Amid the roar of machinery at a motorcycle factory in Luoyang, Henan province, hundreds of wooden crates marked with delivery details of customers in Europe, Africa and Asia are loaded onto trucks.

Produced by Luoyang Northern Ek Chor Motorcycle Co, Dayang brand motorcycles are popular both at home and overseas.

Last year, over 200,000 motorcycles and three-wheelers were shipped from the factory to destinations around the world.

Li Bin, deputy director of the company's overseas marketing department, said that although the United States is not one of the company's main export markets, business is still affected by the ongoing uncertainty over U.S. tariff policies.

"In the first quarter of this year, our company's exports grew by over 20 percent compared with last year. The impact of the tariff war may lead to a slight decline in growth in the second quarter," said Li.

However, he added that as long as the company is sincere with its customers and dedicated to producing quality products, there is the potential to broaden global markets.

In recent years, the Association of Southeast Asian Nations members have collectively surpassed the U.S. to become Henan's largest trading partner, according to statistics from Zhengzhou Customs.

The province has also seen steady growth in imports and exports with countries and regions participating in the Belt and Road Initiative along with emerging overseas markets under the Regional Comprehensive Economic Partnership.

When the U.S. imposed an initial increase of 34 percent on Chinese products in the first round of tariffs, customers in the U.S. factored in adjustments to retail prices, Li said. Although many U.S. consumers have a special liking for three-wheel motorcycles, increased prices due to the tariffs will inevitably reduce sales, he said.

"It also compels us to delve deeper into the path of comprehensive internationalization," Li said.

Considering the unpredictable duration and cycles of the tariff war, the company's priority now is to explore niche markets, expand its domestic and international markets, and build a larger customer base, he said.

The motorcycle manufacturer is also considering collaborating with overseas companies to establish local operations.

"For example, in Mexico, if we assemble locally, according to previous policies, we could save 10 percent on tariffs," Li said.