Cradle of Chinas Private Economy Offers Blueprint to Beat Us Tariffs

How Wenzhou’s Entrepreneurs Turn US Tariffs into Opportunities

How Wenzhou’s Entrepreneurs Turn US Tariffs into Opportunities

In the face of escalating US tariffs, you might expect businesses to be worried about their future. But in Wenzhou, a city in eastern Zhejiang province known as the cradle of China’s private economy, entrepreneurs are finding ways to thrive despite the challenges.

Turning Challenges into Opportunities

Wenzhou’s businesses have a history of resilience. Many of them started as family-run operations in the late 1970s during China’s reform and opening-up period. Now, they’re industry leaders in fields like optical eyewear, footwear, electrical products, new energy equipment, advanced materials, and auto parts.

Take Zhejiang Bridgold Copper Tech Co. Ltd (Bridgold) for example. Shi Wen, a third-generation leader, says their company produces braided copper wire that wraps around the Earth’s circumference 2.7 times every year. “Our main market is Europe,” she says. Despite indirect impacts from US tariffs, Shi remains optimistic. “Every big challenge presents a chance to grow,” she adds, emphasizing their plans to explore new markets in Asia, especially countries involved in the Belt and Road Initiative.

Innovation and Quality Lead the Way

Zhejiang Tongda Optical Co. Ltd (Tongda) is another Wenzhou company turning the tide. Specializing in sunglasses, Tongda supplies some of the top eyewear brands in Europe and the US. Sales director Virginia Huang acknowledges the uncertainty caused by tariffs but sees it as an opportunity to expand into new markets like the Middle East and focus on domestic growth. “You have to be creative and strong to survive,” she says.

Both Bridgold and Tongda invest heavily in high-tech manufacturing and innovation. Their factories use the latest automation technologies, ensuring high-quality products that clients trust. “Upgrading technology isn’t about courage; it’s a necessity,” Virginia asserts.

Community and Cooperation

The spirit of cooperation is strong in Wenzhou. Laorentou, a century-old footwear company led by general manager Ye Qihao, relies on domestic sales. Yet, Ye emphasizes the importance of supporting each other within the industry. “If foreign buyers come to us, we refer them to manufacturers who engage in foreign trade, and they do the same for us with domestic opportunities,” he explains.

A Blueprint for Success

Wenzhou’s approach appears to be working. The city’s GDP reached $32.9 billion in the first quarter of 2025, up 6.7% year-on-year, outpacing national and provincial averages. At the recent China Import and Export Fair, Wenzhou sent a record number of companies, showcasing their determination to succeed.

The blueprint is clear: focus on deep client integration, maintain uncompromising quality, and be agile in exploring new markets. While tariffs pose challenges, Wenzhou’s entrepreneurs see them as catalysts for innovation and growth.

“Diversification is the name of the game,” says Virginia. “Challenges may come and go, but the key is to stay creative and resilient.”

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