Trump-Zölle dampen the light in China's Christmas city

Trump-Zölle dampen the light in China's Christmas city

yiwu, China - for millions of Americans it is a confident, beloved picture: the snow, Christmas music sounds outside, while families decorate their houses with lights, stockings and a star on the tree. But many are not aware of where these iconic Christmas articles come from.

Christmas goods from Yiwu

Most of these articles come from a single city in the province of Zhejiang in China: Yiwu, lovingly referred to as the "Christmas city". According to the state media, the city supplies almost 90 % of all decorative Christmas goods used in the United States. Many of these products come from the largest wholesale market In Yiwu.

The labyrinth of Yiwu

This labyrintha -like complex extends over almost 1,000 acres, which corresponds to around 750 soccer fields. Inside, foreign buyers roam close corridors that overflow in front of goods-from piano-playing Santa Clauses to artificial Christmas trees and countless other articles that are intended for American households, including "Make America Great Again" hats, massage devices and foldable camping chairs.

a worrying trade environment

Currently, however, a wave of concern is noticeable. These sellers are at the front of global trade and are now fighting with three-digit were . These tariffs have triggered worldwide shock waves and shaken long-term relationships between the USA and China, two superpower economies.

The total tariffs on China now exceed astonishing 145 %, the highest trade punishment in the United States in almost a century. Many sellers have already cost customers, drastically reduced their profits and forced them to turn to other markets. When visiting CNN in the market, many sellers expressed their concern and confusion about Trump's measures, but also showed the desire for a peaceful solution, while they put together the fragments of their disturbed business.

customer loss and economic challenges

"Some of our long -standing customers have broken off the business relationship with us, and that makes us very sad," said Ran Hongyan, 43, who has been selling Christmas decorations for 15 years. After the tariffs became effective, she offered her American customers a discount to save the relationship - but unsuccessfully. Eight out of ten canceled their contracts this year, which corresponds to a loss of more than $ 135,000.

The global effects of the trade war

The costs for the trade war not only affect sales, but also the mentality of consumers. The uncertainty about tariffs and future trade relationships leads to many countries less spending - and this has direct negative effects on the market in Yiwu.

While the presidents are fighting in the trade wars, the sellers in Yiwu look worried into the future. The thoughts about your business and the uncertainties that this situation brings with it are omnipresent. The fates of these small companies are deeply connected to the trade relationships between the USA and China.

"We want peace in the world. In my view, I really can't understand why they would do that," says Li Xinyao, who has been working in the imitation flower business in her family business since 1993. "The Americaners always influence the world - if they start the trade war, everyone will be concerned, and our customers may be canceled."

The persistent tensions in global trade mean that the markets stay in motion and that consumers may retain their expenses. Such a situation could have devastating effects on the people in YIWU whose livelihood depends on foreign customers, especially in the run -up to Christmas.

The switch to new markets

For many sellers, whose customer base is strongly anchored in the USA, Trump's trade war means that they now have to look for new opportunities. The idea of decoupling, where two countries have practically no trade or investments, has been discussed in the US Chinese circles for years, although such a historical fracture would give both deeply intertwined economies.

The sales in YIWU now adapts to the changes and is looking for new trading partners in Europe or domestic. "I am now all having been managed to the EU," says Ziqin, 39, the Halloween decorations sold.

an outlook on the future

Although there is uncertainty about the future, there is hope for an early end of trade disputes. The sellers in YIWU hope for an agreement between the leaders of the two countries that could restore the long -existing relationships. But in the tense global economic situation remains unclear whether these markets will ever look like before or whether the long -term customer relationships can ever be restored.

"If we now want to buy a sack or everyday objects during shopping, we are now thinking about whether these products have been imported from the United States," explains Ran, the seller of Christmas decorations. And if they are American: "I will definitely choose not to buy them."