Since the new US government has traditionally chosen China as its main opponent in foreign trade, the balance of power in the global market may change due to American import duties. Large Internet platforms in China are already ready to spend billions of dollars to help local exporters reorient supplies to the country’s domestic market.
Image source: Huawei Technologies
This was reported by the Financial Times. Chinese giant Alibaba, for example, has created a working group whose tasks will include obtaining goods for the holding’s own consumption in more than ten provinces of China. On the Taobao and Tmall online platforms, more favorable terms of sale and promotion will be offered to approximately 10,000 exporters and their 100,000 product items. Alibaba’s Freshippo trading network has also created a “green corridor” for the supply of exporters’ products to the local Chinese market.
Pinduoduo has allocated about $13.7 billion to support suppliers of products to the United States, who will lose the opportunity to import goods on preferential terms from May 2. Particular attention will be paid to supporting small and medium-sized companies engaged in foreign trade activities. Until early May, parcels from China to the United States may not be subject to import duties with a declared value of up to $800. This benefit will soon be canceled, and the duty will increase to 125% in addition to the basic 20%.
Internet platform JD.com has allocated more than $27 billion to purchase goods from Chinese exporters this year. Similar support programs will be launched by Tencent, Meituan and ByteDance. Search giant Baidu will allow 1 million Chinese companies to advertise their products and services using advertising images generated by neural networks without payment. Passenger transportation service DiDi is ready to spend $274 million to support Chinese companies. All these measures are believed to have been initiated by a business representative of his own free will, without pressure from the Chinese authorities. Support for Chinese companies will also be carried out on the stock market, but here it will no longer be possible to do without the participation of state funds.