'We don't care': A defiant China looks beyond Trump's America

by David

In the last week, he suggested the levies on Chinese goods could be halved and spoke of "a fair deal with China" that his administration was "actively" negotiating.

But China's Commerce Ministry rebuffed this as "groundless with no factual basis". The headlines in state media haven't spared him either: "Trump is probably the worst president in American history," read one on state TV.

It seems the US president is waiting for his Chinese counterpart Xi Jinping to pick up the phone.

"We in China say – we have to let the bullet fly for a moment," Col Zhou says. "That means in the fog of war, we do not know what will come next. I believe this kind of tit-for-tat would last for maybe one or two months – hopefully not more than three months."

It cannot go on, he adds, because that would not be good.

It's certainly not good for China. Trump's tariffs are not even the biggest challenge facing the country, which is also grappling with domestic economic pain, from low consumption to a housing crisis that has dented people's savings and confidence in the future.

The terrible timing aside, the tariffs are biting Chinese businesses.

Goldman Sachs has forecast that China's economy will grow by 4.5% this year, short of the government's target: 5%.

The BBC reported from the trading hub of Guangzhou in mid-April that US-China trade was grinding to a halt, with exports to American households piling up on factory floors. That is borne out by this month's economic data, which show that activity in factories has sharply slowed.

BBC/ Xiqing Wang
Traders from everywhere come to Yiwu to buy goods, offering new markets to Chinese exporters

When the BBC rang suppliers to see if shipments to the US had resumed, what emerged was a messy picture. One supplier said he had half-a-million pieces of clothing waiting to ship to Walmart, and a few others echoed his uncertainty. But two exporters we spoke to said some shipments from US retailers had indeed restarted.

The range and complexity of the trade between the two economies, which includes cargo cranes, umbrellas and everything in between, means that it's often down to different businesses and supply chains as to how they deal with the tariffs.

Whatever the business, there is no doubt the American consumer will feel the absence, or potentially higher prices, of Chinese goods.

Opportunities beyond America

The US still relies heavily on Chinese manufacturing to meet its own domestic demand – think phones, computers, semiconductors, furniture, clothes and, of course, toys. Electronics and machinery alone account for more than 50% of US imports.

Walmart and Target reportedly told Mr Trump in a meeting last week that shoppers are likely to see empty shelves and higher prices from next month. They also warned that supply shocks could carry on until Christmas.

Some 90% of all Christmas decorations hung around American homes come from Yiwu in China, where sellers, surrounded by signs wishing the world "Feliz Navidad" told us they're now trying to focus on sales to South America.

And that effort is very evident in Yiwu.

In the early morning, before the shutters even open, the cavernous lobby of the wholesale market echoes with voices reciting key phrases.

"Shukran," says the teacher in Arabic. The students repeat it several times to perfect the pronunciation before learning that it means "thank you". "Aafwan" comes the reply, or "you're welcome".

BBC/ Xiqing Wang
Salespeople in Yiwu are learning to speak to buyers from different countries

These are free lessons offered by a local government association. Most of the students are women, dressed in their best to also impress their customers.

"These women are the backbone of trade across China," says one stall holder, who is originally from Iran and is giving private lessons to an eager student.

"They're doing these lessons to stay ahead of one another, to stay in competition."

Most of the traders can already speak a few words of English. Now they say they need to greet their new buyers in Spanish and Arabic – a small but crucial sign of China's shifting trade relationships.

Oscar, a Colombian who would only give us his first name, was wandering the halls of the market with bags filled with fluffy bunnies and bears.

He says the US-China trade war offers "many opportunities" for traders from other parts of the world.

"Doing business with China is very important," he insists. "[Doing business with] the US these days, less so."

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