🛍️ Growth of Guanyun’s Lingerie Industry
Guanyun county, Jiangsu, has become a major hub for lingerie production, employing 100,000 workers in 1,400 firms. WeMet Industrial Park, nicknamed "Victoria’s Secret Town," has driven this growth, benefiting from U.S. de minimis exemptions. This rule allows tax-free imports under $800, fueling exports via platforms like Shein and Temu. Producers like Lei Congrui report significant revenue increases, with Lei’s Midnight Charm Garment earning $1.3M in 2023.
📉 Tariff Threats and Economic Risks
Upcoming U.S. trade policies threaten Guanyun's success. President Biden’s efforts to close de minimis loopholes, and President-elect Trump’s tariff hikes, may curtail exports. Experts estimate eliminating the rule would cut China’s export growth by 1.3 points, impacting GDP by 0.2%. Nomura highlights potential job losses in low-margin sectors like apparel. Local lingerie factories fear U.S. consumers may face higher prices while businesses see shrinking sales.
🌏 Diversification and Survival Strategies
Faced with these changes, entrepreneurs are adapting. Lei considers bulk cargo shipping and exploring markets in South America, the Middle East, and Central Asia. Xu Yan of Gummy Park is optimistic about domestic demand and alternative international markets. Her livestreamed promotions already capture growing local audiences. Such strategies aim to offset potential losses from U.S. curbs.
🏭 Community Impact and Future Challenges
Guanyun’s industrial rise has raised local incomes, with many factory workers earning competitive wages. Jobs offer alternatives to agricultural work and keep families together. However, the county’s $3B investment in industrial infrastructure may face challenges if global restrictions intensify. Experts warn against over-reliance on e-commerce exports. For Guanyun’s residents, innovation and resilience are vital for maintaining progress.
Will Guanyun’s lingerie sector adapt to new trade rules?
