Chinese Firms Seek Indian Exporters to Navigate US Tariffs

Guangzhou — As trade tensions escalate between the United States and China, Chinese companies are increasingly turning to Indian exporters to maintain their foothold in the American market. At the ongoing Canton Fair in Guangzhou — the world’s largest trade fair — several Indian firms have been approached by Chinese businesses to supply goods on their behalf to U.S. customers.

Facing U.S. tariffs as high as 145%, Chinese firms are seeking alternatives to keep their supply chains alive. In contrast, Indian goods currently face a lower 10% tariff, although this rate may rise to 26% in July if new U.S. measures are implemented. This cost advantage is making India a more attractive partner at a time when Southeast Asian nations, previously favored by Chinese exporters, are also being hit by hefty U.S. levies.

Ajay Sahai, Director General of the Federation of Indian Export Organizations (FIEO), confirmed that Indian suppliers have been offered partnerships where they would manufacture and export goods under Chinese brand names, or in some cases, under co-branded arrangements. Most inquiries are centered on sectors like hand tools, electronics, and home appliances.

Companies such as Jalandhar-based OayKay Tools and Victor Forgings are witnessing a surge in interest. Both firms reported being approached by Chinese and U.S.-affiliated companies operating out of China, seeking urgent production solutions. Victor Forgings is even planning to expand its manufacturing capacity to meet the growing demand.

While Indian firms are cautiously optimistic, they recognize the geopolitical complexities involved. Although India restricts Chinese investments within its borders, collaboration through trade remains an open and promising channel.

Meanwhile, India is advancing negotiations with the U.S. on a broader trade deal that could further strengthen its position. U.S. Vice President JD Vance recently expressed optimism about reaching an agreement by fall, aiming to deepen commercial ties between the two democracies.

The full impact of these emerging partnerships will depend on how U.S. policy evolves in the coming months, as Washington balances pressuring China while securing alternative supply sources.