by ZHANG Xilong

At the China (Guangzhou) Cross-border E-commerce Fair held from August 15 to 17, companies that once relied heavily on U.S. demand described a pressing need to spread risks. The event drew more than 1,000 supply-chain firms, 40 platforms and close to 200 service providers, with overseas visitors from 85 countries.

Zhongshan-based Jinyou Lighting's head WU Yilong told Jiemian News that the U.S. used to account for half of his sales, but orders have dropped 30 per cent this year. "A single-channel strategy is too risky," he said, adding that the factory is exploring Russia, Central Asia and South America.

The urgency reflects Washington's move in April to end duty-free treatment for small parcels, imposing new tariffs on Chinese packages. According to official data, the U.S. took 36.2 per cent of China's cross-border e-commerce exports in 2024—more than double its share of overall exports—leaving the sector disproportionately exposed.

Guangdong, which contributes more than one-third of the country's total, has been hit first. Zhuhai printing supplies association secretary-general Li Changheng told Jiemian News that the industry depends on the U.S. for around one-third of its business. Many firms paused shipments when the rules changed, he said, which meant supply gaps began showing up in July and August.

Yang Ming, public affairs director of Made-in-China.com, said in an interview with Jiemian News that companies are coping in three main ways: building up overseas warehouses, localizing through registering entities or factories abroad, and targeting new markets. "Overseas warehouses are exploding with demand, many already at capacity," he noted.

Industry players increasingly view Russia and Latin America as the most promising alternatives. Goldman Sachs data shows the Latin American e-commerce market more than doubled between 2019 and 2022, with Brazil and Mexico leading. Russia has grown even faster, expanding more than sevenfold in five years to 12.6 trillion rubles.

Ozon, Russia's second-largest platform, is aggressively courting Chinese sellers. Kylie, its senior manager for China operations, told Jiemian News that sellers have been joining in steadily this year, driven partly by geopolitical uncertainty. Electronics, apparel, home goods and toys are among the top categories.

Still, shifting markets brings new challenges. Li warned that Europe, while mature, faces weakening consumption and heavy compliance burdens. Wu Xiurong, a partner at Guangzhou-based Kingpound Law Firm, told Jiemian News that more clients are now asking about legal risks in Latin America, ranging from consumer protection to unfair competition, in addition to traditional IP and platform compliance.

The Guangzhou fair also highlighted two-way flows. Thailand was guest of honor with 35 companies. Consul Chen Liling told Jiemian News that Thai firms hope to learn from China's cross-border e-commerce model while also selling popular products such as condiments, health supplements and fruit into China.