Guanyun: How China's Lingerie Industry is Concerned about US Tariffs

An emerging lingerie industry is forming in Guanyun, China, supported by the state and located in the WeMet Industrial Park, which could be programmatically translated as 'Victoria's Secret Town'—despite no connection to the US brand of the same name. At the forefront of this development is entrepreneur Lei Congrui, whose company, Midnight Charm Garment Co., generates about 70% of its revenue in the US market. The catalyst for the explosive growth is a US customs regulation that grants duty-free status for packages under $800, facilitating Lei's business access to the American market. However, this regulation is on the brink: both outgoing US President Joe Biden and incoming President Donald Trump have announced measures that could cut back this lucrative clause. This threat could have far-reaching impacts on Guanyun's economic prospects. Concern is growing in the region, as many residents found an alternative to traditional agriculture in the thriving lingerie industry. While local authorities have massively supported the development of the industrial park, economic uncertainties cast doubt on the achievements made. In a sector oriented towards exports and low production costs, changes in international customs policy are of significant importance. Lei Congrui is now considering strategy changes to cushion potential losses in the US market by investing in warehouse capacities in the US and exploring new markets in South America and Asia. At the same time, entrepreneur Xu Yan from Gummy Park is optimistic about serving other markets to compensate for losses from the US. The economic development in Guanyun remains exciting to watch, as it exemplifies the opportunities and risks that arise from global market laws and trade agreements for emerging industries in China.