Some China-based businesses that have been negatively affected by US tariffs are reaching out to Indian exporters to fulfill orders on their behalf and help them retain their American clients as they negotiate a trade war that is causing seismic waves in global commerce.
According to Ajay Sahai, director general of the Federation of Indian Export Organizations, Chinese corporations asked a number of Indian companies to sell items to their US consumers at the Canton Fair, the largest trade show in the world, which is taking place in Guangzhou through May 5.
He stated in an interview that the Indian companies would pay the Chinese companies a commission in exchange for the sales. As they negotiate a trade war producing seismic waves in global commerce, some China-based companies that have been severely impacted by US tariffs are contacting Indian exporters to fulfill orders on their behalf and assist them keep their American customers. According to Ajay Sahai, director general of the Federation of Indian Export Organizations, Chinese corporations asked a number of Indian companies to sell items to their US consumers at the Canton Fair, the largest trade show in the world, which is taking place in Guangzhou through May 5. He stated in an interview that the Indian companies would pay the Chinese companies a commission in exchange for the sales.
However, in contrast to Southeast Asia, India's government continues to impose limitations on Chinese investment, which makes it challenging for businesses to establish operations there or transport commodities to the US via India. According to Sahai, Indian companies at the Canton Fair were instead asked to co-brand or supply goods to US corporations under the Chinese companies' brands. "There are hopes that some of the US customers may start negotiating directly with Indian suppliers," Sahai said, adding that the majority of the inquiries came from industries including hand tools, electronics, and home appliances.
According to Sahai, the buyers and suppliers would bargain about the fee given to the Chinese companies. OayKay Tools, a Jalandhar-based company that produces hand tools including cold stamp machines and drop forge hammers, is negotiating with Chinese and American companies to serve the US market. According to OayKay Tools' export officer Siddhant Aggarwal, "four to five companies have approached us.They must provide customer service because they have a brand name to uphold."
The surge in export orders coincides with the government of India making major strides in negotiations for a trade agreement with the Trump administration, which New Delhi hopes would help it avoid the higher tariffs imposed by the United States. During a visit to India last week, Vice President JD Vance urged a new era of cooperation between the two countries and emphasized the advancements achieved in a bilateral trade agreement that they want to finalize by the fall of this year.
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