Sino-US Trade War: American dealers ordering Christmas ornaments early

World
Europe

02:31

Christmas is over four months away. But those in China who make holiday ornaments are busier than Santa's elves right now. Many American dealers have placed their ornament orders early this year, hoping not to get "nickled and dimed" by China-US trade tensions. CGTN's Wu Lei takes us to Yiwu city in east China's Zhejiang province and pops in on one of Santa's factories.

Making and selling ornaments for over 20 years, you might say Christmas is year-round for Huang Jinhe. You can find over 50-thousand Christmas accessories at his company in Yiwu, making them one of Santa's top exporters worldwide.

HUANG JINHE, OWNER ZHANBANG CHRISTMAS "American markets account for over 30% of my total exports. This year we will export hundreds of standard containers to American dealers and wholesalers, as well as some supermarkets like Wal-Mart."

Huang says most foreign buyers place their Christmas orders in the summer, so his factory is now very busy. By September, the majority of their Christmas products will be well on their way from Chinese factories to wholesalers all over the world.

WU LEI YIWU, ZHEJIANG "Under the current Sino-US trade war, Christmas ornaments and accessories are not on the tariff list yet. However, due to the unpredictability of the trade spat, Chinese exporters say many American dealers have placed their orders a little earlier this year than in the past."

Yiwu city is called the world's Christmas ornament capital. It's estimated that the U.S. imports over 90% of its Christmas accessories from China. But many fear the ongoing trade war will affect both businesses and consumers on a larger scale.

HUANG JINHE, OWNER ZHANBANG CHRISTMAS "We plan to increase our export totals to American markets. But due to rising labor costs, as well as the China-US trade friction, we are also worried about our usual business with the US. If the trade war impacts us severely, we may turn to other countries."

The Christmas decor business is a lucrative one, and more and more companies want in on the action. But Huang says if the U.S. keeps imposing tariffs on products from other countries, it'll be American consumers paying the price, which might make for a not so holly-jolly Christmas, 2018. WL, CGTN, YIWU, ZHEJIANG PROVINCE.