Chinese exporters are turning their attention to the vast domestic market in response to global economic challenges and trade tensions. With the rise of U.S. tariffs, companies across the Chinese mainland are taking proactive steps to tap into local consumer demand.
On Friday, the China General Chamber of Commerce, along with six other national trade associations, issued a joint proposal encouraging grocery chains, department stores, e-commerce platforms, and wholesale markets to establish “green channels” for exporters. These initiatives aim to showcase export-quality goods through dedicated retail zones and promotional events.
Experts view this shift as a strategic move to optimize resource allocation and boost domestic consumption. “This is not only a response to external risks but also a necessary step to build an independent and controllable supply chain system,” said Wan Zhe, a professor at Beijing Normal University.
China’s total retail sales of consumer goods reached a staggering 48.79 trillion yuan (about $6.79 trillion) last year, significantly surpassing its exports to the United States. The immense domestic market offers strong support for foreign trade enterprises looking to pivot their focus.
Major industry players have responded swiftly. JD.com, a leading e-commerce platform, has pledged to purchase at least 200 billion yuan (around $27.3 billion) worth of goods transitioning from export to domestic sales over the coming year. The company plans to accelerate the construction of a self-operated system to support this shift.
Kong Xiangying, vice president of JD.com, stated that the company will deploy professional purchasing and sales teams to work directly with foreign trade enterprises. “We will set up special areas for quality foreign trade products and provide intensive training, subsidies, and various resources to help these enterprises quickly expand into the domestic market,” Kong told China Media Group (CMG).
Expanding into the domestic market comes with its own set of challenges due to differences in regulations, distribution channels, and payment systems. To address this, the Ministry of Commerce has proposed promoting connectivity between domestic and foreign trade channels, brands, production and sales, and standards.
Local governments are also stepping in to provide support. Anhui Province plans to hold an e-commerce platform investment promotion conference in April, while Fujian Province has issued a document offering “one-on-one” assistance to traditional competitive export industries seeking to expand domestically.
Wan emphasized the importance of enhancing market research and consumer insights. “Companies need to adjust product design and marketing strategies to better align with domestic demand,” he said.
He also suggested broadening sales channels by utilizing e-commerce platforms, offline supermarkets, and specialized markets to rapidly enter the domestic market. Wan stressed the need for a collaborative system where the government optimizes the business environment, platforms address market adaptation challenges, and industry associations promote continuous coordination.
The shift of Chinese exporters to the domestic market represents a significant transformation in the nation’s economic landscape. By leveraging the vast consumer base within the Chinese mainland, companies are poised to not only mitigate external risks but also drive sustainable growth from within.
