Chinese sellers are increasingly using the social media platform Rednote to sell products originally targeted for US markets due to high tariff rates.

Tariffs imposed by the US administration have reached up to 145%, leading sellers to offer up to 90% discounts on items like rice cookers and toasters.

To counter export slowdowns, China is encouraging local sales, with platforms like JD.com pledging billions in support for domestic distribution.

However, some industry observers believe these livestreams may be more about marketing than actual overstock, as many exporters shift to new markets when blocked.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Nationalism-driven commerce follows predictable patterns in trade disputes

The “sympathy purchases” mentioned in the article reflect a recurring economic nationalism pattern seen throughout US-China trade tensions.

In previous trade war episodes (2018-2019), similar consumer sentiment campaigns emerged when tariffs escalated from 10% to 25% on $200 billion of Chinese goods 1.

These campaigns often leverage nationalist rhetoric, with hashtags like “resist,” “China can make it,” and “save factories” gaining traction during heightened trade tensions, as they are now on Rednote 2.

This pattern also appeared during the 2018-2019 trade disputes, when American companies appealed to patriotic purchasing in response to retaliatory tariffs from China on agricultural products 3.

The effectiveness of these campaigns lies in transforming economic disputes into cultural narratives, allowing brands to maintain demand by positioning consumption as a patriotic act rather than just a transaction.

2️⃣ Strategic pivots to domestic markets mitigate export disruptions

JD.com’s reported 200 billion yuan fund supporting exporters’ transition to domestic sales reflects China’s strategy to reduce dependence on US markets.

This approach builds on a decade-long economic policy known as “dual circulation,” which prioritizes growing domestic consumption while maintaining export capabilities as a hedge against trade disruptions 4.

When the US imposed tariffs on $250 billion of Chinese goods in 2018-2019, China redirected export-oriented businesses toward its domestic market of 1.4 billion consumers 3.