For China exporters stuck with stockpiles from the US trade war, help is only a click away

JD Group, Alibaba and Suning are among Chinese e-commerce giants helping domestic companies buffer losses incurred from the Trump administration's 145 percent tariffs and new duties on small-package deliveries from China.

The aim is to assist affected trading companies to open domestic online selling channels to off-load warehoused backlog.

The JD.com platform has posted a menu choice on its front page: "Export goods for domestic sale." It is now one of the most popular sections on the site. Clicking on the tag brings up products ranging from beauty aids, kitchenware, hardware, linens to Halloween decorations, health food and toys. All are offered at favorable prices, and many have already received more than 10,000 orders.

Online shopping blogger Tu Xi said she found some of the export products cheaper than alternatives available online or off.

"I bought a wool comforter at a price 40 percent lower than others on the market, yet it felt the same – cozy and warm," she said. "It's obvious some of the products appeared in haste because many of the descriptions are quite simple. But buyer comments about quality are favorable."

Earlier, JD announced it will be offering no less than 200 billion yuan (US$27.7 billion) of such goods within the next year. The diversion of stockpiled goods to the domestic market offers Chinese mainland consumers high-quality, affordable products.

Kingdom Cares, a home beauty products company based in the southern Guangdong Province, was one of the earliest beneficiaries.

"Originally, 60 percent of the company's products went to Europe and North America, with about half to the US," said company founder Ma Hong. "But our assembly line was suspended after the US punitive trade policies, leaving us an overstock of hair straighteners and face steamers."

Participation in the JD assistance program identified more than 10,000 products to shift to the domestic market. Kingdom Cares will also receive help in promoting the products online, including rewriting manuals for the Chinese market.

Many Chinese companies that have geared sales to the overseas market are unfamiliar with the domestic market and lack an internal supply chain, JD Group said.

Meanwhile, Tmall, a Chinese-language consumer online retail platform operated by the Alibaba Group, announced an initiative to help more than 10,000 cross-border traders to sell at least 100,000 products.

The site is providing step-by-step instructions for companies on how to open online shops, select products and set prices in the domestic market. It will also tap Tmall's established delivery network to allow quick shipments across China.

Local governments around the country have also hosted fairs for foreign trade companies to make contact with e-commerce platforms. A recent fair in Shanghai attracted nearly 80 companies who were expected to sell on 16 websites.

Shanghai Subei Trading Co, whose main business used to export clothing to the US, has halted new orders from its principal market while it navigates the complexities of a shift in sales focus.

The company has a stockpile of summer clothing sitting in its warehouses, typically priced between 30 and 50 yuan apiece.

"For the US orders we've already received, we're in a holding pattern," said Wu Xiaolin, finance head of the company. "Some shipments have been temporarily paused as we monitor the impact of US tariff policies. Others are en route to ports, awaiting customs clearance. We are currently negotiating with clients to determine how to handle the increased warehousing and customs clearance costs."

Cargo on ships from China loaded after April 9 will incur the full 145 percent US tariff when arriving in American ports, resulting in fewer such ships at sea and less cargo en route.

Gene Seroka, executive director of the Port of Los Angeles, said the weekly volume of cargo ships docking at its facilities has dropped 35 percent from a year earlier.

"These cargo ships coming in are the first ones to be hit with the tariffs," he said. "That's why the cargo volume is so light."

The Chinese government has launched a series of policies to support companies affected by the higher duties.

The State Council, China's Cabinet, released new guidelines to encourage exporters to divert goods to the domestic market. A key feature is easier certification of goods to be sold in China and eased tax rules on sales of goods domestically. This helps companies navigate differences in product standards between export and domestic markets.

Today, Chinese Vice Premier He Lifeng will meet with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in Geneva for the first bilateral trade talks since the US tariffs were imposed.