Hard to pivot: why China’s exporters struggle to sell at home despite trade war
They went the extra mile to win over Western markets – then Trump’s tariffs changed everything
A Chinese company that exports straws and food packaging materials spent 30 million yuan (US$4.16 million) last year to comply with stricter environmental standards in Western countries. Although the costs to upgrade its production facilities were steep – roughly equivalent to the profits the firm would make selling tens of millions of straws – the potential in the US and European markets seemed to justify the investment.
And they were right – in theory.
By betting on the growing environmental awareness among Western consumers, Soton Daily Necessities, based in Zhejiang province, went the extra mile – adopting a tech- and capital-intensive strategy to ensure that even a simple straw could be good for the planet.
“Anyone with sound logic would not expect a US president to go to such an extreme,” Soton’s deputy president, Mao Bin, told local media in Zhejiang.