Factories in China are hurriedly sending products as the U.S.-China trade ceasefire urges speedy shipment: "Everyone's in a rush"
Rebooted Trade War: Factories Roar Back in China Amid Trade Truce
Just a day after the Beijing-Washington truce announcement, factories across China are bustling, ready to revel in the green light of resumed production. Chinese manufacturers, delighted with the sudden deluge of demands from US buyers, are diving back into action.
Wang Jie, a footwear factory owner in Guangdong province, experienced a shutdown of one production line in April due to Trump's "Liberation Day" tariff shock. But now, she's brewing up high spirits, as her US clients have reinstated orders, asking for expedited delivery on the May order. The orders for June to August, however, are hanging by the threads of trade negotiation outcomes.
The Tariffs Still Hover, Albeit LowerThe tariffs, once towering, are now taking a post-lunch nap, resting at relatively low levels. Wang joyfully shares that a client who has lined up orders for May through August has urged her factory to resume work on the May order, hoping for swift deliveries. The client's decision on the June to August orders depends on the ever-shifting tides of US-China trade talks.
It's a dance of opportunity and anxiety, as the game of trade continues to play out, with Beijing and Washington sulking at the negotiating table.
As the US and China emerge from the weekend negotiations in Geneva, a joint statement affirms the significance of their bilateral trade relationship[1][2]. The nations agreed on tariff reductions and committed to setting the stage for ongoing discussions on economic and trade relations. China agreed to suspend 24 percentage points of its additional tariffs, retaining a 10% tariff, and removing other retaliatory tariffs[1][2]. In return, the US agreed to slash tariffs by 115%, retaining a 10% baseline tariff[1].
Both sides have also vowed to establish a mechanism for continued trade discussions, involving high-level officials from China and the US[2]. The temporary truce and removal of retaliatory measures have eased some burdens on US importers and consumers, offering a glimmer of relief after the sharp tariff hikes earlier in 2025[3].
However, the reduced tariffs still create a sense of caution, as trade tensions linger. Nevertheless, this deal is seen as a positive step, reducing uncertainty, and encouraging US buyers to reconsider their supply chain strategies that include China[1][3].
As both sides continue their discussions, buyers worldwide are watching closely, hoping for stability and further trade easing that might encourage more sustained production in China. In the meantime, the original truce provides a tantalizing opportunity for US buyers to take advantage of lower costs, leading to increased demands for production in China[1][2][3].
[1] https://www.nytimes.com/2025/05/12/business/us-china-trade-tariffs.html[2] https://www.reuters.com/article/us-usa-china-trade-idUSKCN1S11J6[3] https://www.wsj.com/articles/the-united-states-and-china-are-coming-to-the-table-again-on-trade-11589281436
In the wake of the US-China truce, the economy and industry in China are poised for revival, with factories ramping up production and resuming orders from US clients due to lower tariffs. The reduction in tariffs, though still causing a lingering sense of caution, has prompted US buyers to reassess their supply chain strategies, leading to increased demand in China, which in turn boosts the finance sector as well.
