Industry insiders said that some Chinese companies that have been severely hit by U.S. tariffs are contacting Indian exporters and asking them to complete orders on their behalf to help Chinese companies retain U.S. customers amid the trade war and cope with the huge impact on global commerce.
"Bloomberg" reported that Ajay Sahai, director general of the Federation of Indian Export Organizations, said that at the "Canton Fair", the world's largest trade show, which will end on May 5, several Indian companies have received invitations from Chinese companies, hoping to supply goods to their American customers. In return for sales, Indian companies will pay commissions to Chinese companies.
Most of China's exports to the United States face a 145% tariff. In contrast, products shipped from India to the United States currently have a tariff of only 10%. If a trade agreement is not reached after the 90-day suspension expires, India will face a reciprocal tariff of 26%.
Trump imposed massive tariffs during his first term, causing many Chinese exporters to shift production capacity to Southeast Asian countries, including setting up factories in Vietnam or transshipping goods to places such as Thailand before exporting to the United States. After Trump returned to the White House, he also focused on Southeast Asia. This time Trump imposed a 46% reciprocal tariff on Vietnam and other countries. Against this background, Indian exporters may see more orders flowing in.
Unlike Southeast Asia, the Indian government is relatively tough on Beijing and imposes restrictions on Chinese investment, making it difficult for Chinese companies to do business locally or transship goods to the United States through India.
Sahay pointed out that Indian companies at the Canton Fair are required to supply goods to the United States under Chinese brands or joint brands with Indian companies. Sahai disclosed that most of the companies inquiring were from the fields of hand tools, electronic products and home appliances, adding that they hoped that some American customers could negotiate directly with Indian suppliers. The commission paid to Chinese companies will be determined through negotiation between buyers and suppliers.
The increase in export orders comes as India makes significant progress in talks with the Trump administration on a trade deal, which New Delhi hopes will help the country escape the impact of higher U.S. tariffs. During his visit to India, US Vice President J.D. Vance called for a new era of cooperation between the two countries, emphasizing the progress made by the two sides on a bilateral trade agreement and planning to reach an agreement by this autumn.
It remains uncertain to what extent Washington will allow Indian companies to fill the void left by Chinese companies, as Washington attempts to pressure Beijing to make concessions and the United States and China remain at odds over tariffs.
