Chinese retail giant offers 3.92 trillion yen to help exporters sell domestically, accelerating move to abandon America and return to China
As the trade war between the United States and China intensifies over tariffs imposed by the Trump administration, Chinese retailers have announced a series of initiatives to help companies that previously focused on exports to redirect their products domestically.
China's retail giants pledge to help exporters go domestic amid trade war | Reuters
The US and China Are Going to Economic War—and Everyone Will Suffer - WSJ
https://www.wsj.com/economy/trade/us-china-tariffs-trade-war-6f143252
JD.com, an e-commerce site provided by Chinese company JD.com, announced on April 11, 2025 that it will launch a 200 billion yuan (approximately 3.92 trillion yen) fund by 2026 to support domestic sales by Chinese exporters.
JD.com will send employees to Chinese companies engaged in foreign trade to directly purchase the 'high-quality products' that these companies handle and sell them in special areas on its e-commerce platform, as well as directly drive traffic to those areas and provide marketing support.
On April 10, US President Donald Trump raised tariffs on Chinese products to 145%, the highest ever. In response, the Chinese government imposed retaliatory tariffs of 125%, and the conflict between the US and China is rapidly escalating. JD.com's latest announcement is said to be in response to this.
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JD.com's rivals have also announced similar initiatives. Alibaba-owned supermarket chain Freshippo, known locally as Hema, said it plans to create a special zone on its platform dedicated to products from export-focused companies.
The initiative aims to make it easier for exporters to join the platform by simplifying the registration process on Freshippo's site and allowing them to take advantage of the company's warehouse network.
For Chinese exporters, entering the domestic market means joining a fierce battle for a piece of the pie in a country where an economic slowdown is becoming clear. However, by quickly opening up domestic sales channels with support from major e-commerce platforms, they may be able to make up for some of the losses caused by declining overseas sales.
The movement to support a return to China is spreading not only to e-commerce sites but also to physical stores, with two major Chinese supermarket operators, China Resources Vanguard and Yonghui Superstores, announcing similar support measures.
'As the global economic situation changes and the international trade war intensifies, countless Chinese supply chain companies are both unwilling and eager to give in. If exports stall and you shift to domestic sales, we will open a 'green channel' and get their products on our shelves within 15 days,' Yonghui Superstores said in a statement.
The trade war has shown signs of calming slightly, with the Trump administration suspending additional tariffs on countries other than China for 90 days and exempting electronic devices such as smartphones imported from overseas, including China, from the tariffs. However, trade tensions with China, which will account for 13% of all imports in 2024, are having a significant impact on the economies of both countries.
American consumers have suffered a 24% rise in prices over the five years since around 2020, and the lives of Americans, who have become highly dependent on cheap products imported from China, are expected to become even more difficult in the future.
The loss of the American market would also be a blow to China, which is suffering from the collapse of its real estate bubble and sluggish consumption. Analysts at financial consulting firm Capital Economics have predicted that China's exports to the United States will be halved over the next few years, while analysts at Societe Generale, a major French bank, have predicted that they will be 'almost completely wiped out.'
'I don't think China should compromise,' one toy manufacturer told The Wall Street Journal. 'At the end of the day, it's the Americans who are being unreasonable.'
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