More Expensive Christmas? Santa's manufacturers face uncertainties

World
Europe

02:38

Bells will be ringing, but the news may not be all that glad in the world of Christmas ornaments. Companies in Southeastern China that make them have already started next year's orders. But for some, the ongoing US-China trade friction may mean decking the halls with something else next year. CGTN's Wu Lei has more.

A holly jolly Christmas always shines with ornaments. For over 20 years, Huang Jinhe has made spirits bright by exporting his accessories. But this year, Santa Claus is coming to town with less of Huang's toys and goodies. He blames the increasing economic conflicts and sanctions among different countries.

HUANG JINHE, OWNER ZHANBANG CHRISTMAS "We can't export accessories to the Iranian market because of the US's sanctions on Iran. Over 10 trading partners' goods were stored in my warehouse, which can be loaded into about 3 to 4 containers."

Yiwu produces two thirds of the world's Christmas decorations. Huang's company specializes in over 50,000 holiday accessories. With increasing costs of raw materials and labor, he has started preparing next year's orders early.

WU LEI YIWU, ZHEJIANG "The US imports an estimated 90 percent of its Christmas accessories from China. But many fear the ongoing trade spat will affect both businesses and consumers on a larger scale."

Huang says the American market accounts for about 30 percent of his total business. But in order to avoid suffering potential tariff effects, he has scaled back the design of new products for the American market, while making other plans for the upcoming uncertainty.

HUANG JINHE, OWNER ZHANBANG CHRISTMAS "If the US imposes tariffs on these ornaments, I will have to raise prices, we can't run business at a loss. And we are also exploring new markets like India, the Philippines and other nearby countries."

Yiwu's 200-plus companies that make Christmas accessories agree that the US is a big buyer. Many are now exploring other markets, saying they can't stop production over policy issues. They plan to adjust strategies to make sure everyone can rock around the Christmas tree again next year, and so on.

WL, CGTN, Yiwu, Zhejiang province.