Manufacturers in Zhejiang province, China's second-largest exporting region, are actively seeking to reduce reliance on the U.S. market in response to escalating tariffs imposed by the United States.

The province, which accounted for 15.9% of China's total exports in the first five months of 2025, has experienced a notable shift in trade patterns.

Exporters are increasingly targeting markets in Europe, Southeast Asia, the Middle East, and Russia.

In May, exports to Europe rose by 12% year-on-year, with shipments to Germany up 22%, while exports to Southeast Asian countries increased by 15%.

This diversification comes as average U.S. tariffs on Chinese goods remain above 50%, with some products facing duties as high as 145%.

Companies such as Shaoxing Sulong Outdoor Technology and Shaoxing Shangyu Lihua Electronic Technology have reported declining U.S. orders, prompting a strategic shift toward online platforms and regional diversification.

Others, like Zhejiang-based power tool manufacturer Kimo, are prioritizing expansion in Europe, Russia, and Southeast Asia after experiencing reduced interest from U.S. buyers.

The Zhejiang provincial government is supporting manufacturers through trade fair subsidies, e-commerce training, and export credit insurance.

Initiatives include partnerships with over 20 global cross-border platforms to broaden international reach for Zhejiang-made goods.

Additionally, the province has launched programs to help exporters build brands and sell directly to Chinese consumers, aiming to bolster domestic sales amid weakening internal demand.

Despite these efforts, some manufacturers report declining profits and tough market conditions due to increased competition in new markets.

For instance, Ewing Tourism Products, a beach umbrella maker, has observed a surge in competitors targeting European buyers, leading to price pressures.

Nevertheless, exporters remain focused on adapting and sustaining China's export-driven economy amid uncertainties in U.S.-China relations.