In response to escalating trade tensions and increased tariffs between China and the United States, Chinese internet giants Meituan and JD.com are launching initiatives to assist export-oriented businesses in pivoting to the domestic market. Meituan announced plans to support these businesses by providing assistance in marketing, operations, delivery, and fee exemptions, aiming to create an integrated domestic and foreign trade ecosystem that allows export products to reach more local consumers. Similarly, JD.com and Alibaba’s Freshippo are implementing measures to help tariff-impacted businesses expand within China’s local markets.
These efforts come amid a backdrop of intensified trade disputes, with the U.S. imposing tariffs up to 145% on Chinese imports, prompting China to retaliate with tariffs of 125% on U.S. goods. This trade conflict has significantly affected China’s export-oriented businesses, leading to a strategic shift towards bolstering domestic demand and consumption.
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Context & Background
The ongoing trade war between China and the United States has led to significant tariff increases on both sides, severely impacting Chinese exporters. In response, the Chinese government has been encouraging businesses to focus on the domestic market to mitigate the adverse effects of reduced international trade. This strategic shift aims to bolster domestic consumption and reduce reliance on export markets.
Chinese internet companies like Meituan and JD.com are playing a crucial role in this transition by offering platforms and support services that enable export-oriented businesses to reach local consumers effectively. These initiatives are part of a broader effort to sustain economic growth amid external pressures and to strengthen the resilience of China’s economy by enhancing domestic demand.
In This Story
Meituan
Meituan is a leading Chinese food delivery and on-demand service platform that offers a wide range of services, including restaurant reviews, group buying, and travel booking.
JD.com
JD.com is one of China’s largest e-commerce companies, providing a vast selection of products across various categories, including electronics, apparel, and home goods.
Alibaba Group
Alibaba Group is a multinational conglomerate specializing in e-commerce, retail, internet, and technology, known for its online marketplaces and cloud computing services.
Freshippo (Hema)
Freshippo, also known as Hema, is Alibaba’s grocery retail chain that integrates online and offline shopping experiences, offering fresh produce and a variety of other products.
