The Chinese city powering Christmas
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What is the significance of Yiwu in global Christmas production?
Today we're investigating the Chinese city that claims to be the home of Christmas. From the UK, this is Marketplace Morning Report from the BBC World Service. I'm Ed Butler, and Merry Christmas to you all. I hope you're having a good Christmas morning. Have you ever wondered where your festive lights, the baubles and the toys all come from? Well, there's a good chance a fair few of them originate in the Chinese city of Yiwu. Join me as we find out more about this place and just how it's being affected by the latest US tariffs. The sound of traders in the town of Yiwu in central eastern China attempting to master Spanish. Language skills like these are important because Yiwu is a major international trading hub, especially at this time of year, selling commodities to a global market.
Once a small rural town, Yiwu began gaining a reputation back in the 1980s for its open-air market selling small commodities. Now it's a sprawling international trade centre, spanning hectares and several floors.
If you were to imagine that Santa Claus has outsourced all of the production of everything he produces, it would likely be found in Yiwu City.
How has Yiwu evolved from a small town to a trading hub?
That's Han Lin, China director for the consultancy The Asia Group.
60% of all of the global production of Christmas ornaments, for example, are all produced in Yiwu. And Yiwu sells to about 500,000 buyers from 200 countries around the world.
There are 50,000 shops in all. If you were to spend just three minutes in every one of them, it would take you more than a year to get round the maze of arcades here. Ashley Dudarenok, the founder of a Chinese research and analytics consultancy that works with companies in the city, says that Yiwu's distinctive quality is the spirit of enterprise that drives its thousands of traders. It's one of multiple towns and cities in China built... around a very specific category of export.
China likes to have centres of excellence. For example, in Guangzhou, we have a town that's a shoe town or another town that focuses on underwear and Yiwu focuses on, you know, small commodities or Christmas decor.
Christmas products. How did that evolve? Just tell me, I mean, talk to me about that. This dates back to the 90s or something.
Yes, absolutely. First, it was really about manufacturing, you know, Christmas decorations, and it was very much focused on the U.S. market. And now becoming the real innovator, a company that I personally know of, they produce Christmas ornaments and they produce Christmas balls.
What impact do U.S. tariffs have on Yiwu's traders?
They are able to assemble a Christmas ball in about two seconds. So think about that. And their newly developed machines and factory floors ultimately increased their efficiency by about 20%. So by now, they are not just a supermarket for cheap products. They are also an innovation center in many, many ways.
That's consultant Ashley Dudaranok. I'm Ed Butler, and today I'm looking at Yiwu, the Chinese city hosting the world's largest wholesale market, which itself alone provides the world with more than half of its Christmas decor. But how secure an industry is this, given the growing cost of all this international trade, especially the trade that's going to the US?
So, if you look at that... China, first row. China, 67%.
Ever since the start of his second term in January, President Trump has been introducing, and then sometimes walking back, massive hikes on the import taxes imposed on Chinese goods. It's left many traders in Yiwu predictably frustrated.
What do you think of Trump? Trump?
How are Yiwu traders adapting to changing international markets?
He's a joke. He tells jokes every day. Imposing tariffs is like a joke to him. We used to have buyers from the US. Now we don't care. We have rich buyers from elsewhere. Doing business with them is good.
Storeholders in Yiwu are no longer as reliant on the US as they once were, switching exports instead to other countries. In America, in this sector, as with other imported goods, prices have been rising. In the run-up to Christmas, I spoke to Mac Harmon. He's the founder and CEO of Balsam Hill, a leading brand in Christmas decor.
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Chapters
5 chapters
1
What is the significance of Yiwu in global Christmas production?
0:02–1:27
2
How has Yiwu evolved from a small town to a trading hub?
1:27–3:02
3
What impact do U.S. tariffs have on Yiwu's traders?
3:02–4:15
4
How are Yiwu traders adapting to changing international markets?
4:15–5:09
5
What are the current trends in Christmas decor exports from Yiwu?
5:09–6:31