Today’s Focus: All tax evasion routes are completely blocked, leaving Yiwu merchants helpless; the Russia-Ukraine agreement stalled, with Vans issuing an ultimatum and Rubio absent from the peace conference; rumors of Liu Guoliang losing power become reality as he suddenly steps down from the position of Chairman of the Table Tennis Association.
The US-China trade war is rapidly escalating, with Chinese goods facing punitive tariffs as high as 245% from the United States, leaving no possibility for Chinese products to enter the American market. This outcome has plunged Yiwu in Zhejiang, known as the “Global Small Commodities Capital,” into a crisis, with many businesses that heavily rely on the American market for survival crying out in despair.
Many businesses hope for negotiations between Beijing authorities and the United States, but the Chinese Communist Party’s stance remains very strong.
Recently, CNN published an interview with a female Yiwu business owner, Nie Ziqin, in which she firmly stated, “If the US wants to buy, they can come and take it, I won’t give it to the EU.” This statement quickly spread among domestic media, seen as a strong reaction of small and medium-sized enterprises against the US sanctions.
Regarding such performances, Sun Guoxiang, a professor at Nan Hua University in Taiwan familiar with international trade, said that such declarative statements are more of a “strategic statement.” In reality, completely diverting the losses in the American market to the European Union is not practical. He mentioned that the EU market has high barriers, strict standards, as well as language and cultural barriers, along with issues of logistics and costs, making a shift not as simple as stated.
Yao Yuan, a professor at St. Thomas University in the United States, called this a typical internal propaganda strategy. He mentioned that if the EU or emerging markets were as easy to do business with as the merchants claimed, they would have shifted earlier instead of waiting for this situation. In reality, there is a significant gap between reality and declarations.
Under the high tariffs imposed by the United States, some merchants are trying to “crack the tariffs,” with some hosts learning “how to evade tariffs,” including disassembling goods and adjusting declaration values. However, experts say that these hosts are mainly seeking popularity, and their methods are not practical.
For example, a host claimed that a piece of clothing originally valued at 150 yuan with a cost of 100 yuan would incur a 100% tariff, meaning 150 yuan. However, the merchant can split the contract and divide the selling price as 75 yuan for patent fees, 45 yuan for service fees, and 30 yuan for material fees. By doing this, the tax is only applied to the “30 yuan material fee,” significantly reducing costs.
Similarly, toys can be disassembled into parts and then imported into the US in batches, with the tax burden on parts lower than that on the whole toy, resulting in some tax savings.
An industry insider, “Old Wu Ross Little Creek Foreign Trade,” pointed out that such methods may seem feasible but lacking patent certificates or processing records could lead to false declarations, potentially leading to more taxes and fines than saved tariffs; moreover, transporting in multiple batches would increase logistics costs significantly; and finally, after the parts are shipped to the US, they have to be assembled, with American labor costs significantly higher than in China, potentially negating any saved tariffs with labor costs; finally, Americans are targeting China at every step, not even allowing the origin to be changed. If you enter in batches and report separately, would Americans not block this loophole?
Yao Yuan also stated that these types of operations, while flexible, carry significant risks. He emphasized, “If lacking patent certificates or genuine service records, once customs deem it as a false declaration, there may not only be supplementary taxes but also face fines several times more.” He stressed that while these alternative methods may help in short-term tariff evasion, they increase logistics, labor, and management costs, making them not a sustainable solution.
Some merchants are selling goods through overseas social media apps like TikTok at extremely low prices.
In response, Sun Guoxiang mentioned that while those live streams may seem lively, their sales volume is limited. For instance, in the past, American orders may have included 100 tons of goods, but through live streams, they may only sell 10 tons, leaving 90 tons unsold. Additionally, the goods sold through live streams still rely on product quality, logistics capacity, and customer demand.
In fact, before Trump’s reelection, many sensitive companies realized that Trump’s office would increase tariffs, so to bypass the high American tariffs, they moved their production lines to Southeast Asian countries. However, unexpectedly, to contain the CCP, Trump also imposed heavy taxes on Southeast Asian countries.
To prevent further high tariffs from the US, several Southeast Asian countries have begun taking measures. For example, the Vietnamese Ministry of Trade has ordered a crackdown on transshipment of goods to “wash the origin,” and tightened inspections on the origin of exported goods to the US, imposing heavy penalties on violating companies. This order came into effect on April 15.
Yao Yuan believes that this trade war has expanded beyond simple economic means to a comprehensive policy and technological warfare. “This is not a game that can be escaped with clever tricks and maneuvers.”
Some Yiwu merchants believe that Yiwu has a unique advantage in small commodity manufacturing. They argue that during the Christmas period, the United States cannot do without Chinese-made decorations and clothing.
However, Yao Yuan dispels this myth, stating, “If you don’t do it, the US will turn to Vietnam, Malaysia, or even India.” He warns that if businesses still hold the misconception that “the market cannot do without China,” they will only accelerate being replaced by international buyers. He mentioned that the core issue is China’s overcapacity, adding, “The real ones hurt are not American consumers but China’s small and medium-sized enterprises and laborers.”
Yao Yuan believes that the US sanctions this time are not simply a trade measure but a long-term strategic decoupling. “This is an industrial restructuring akin to the Cold War, with the world splitting into two supply chains, pro-American and pro-Chinese,” he said. “The real victims are the grassroots people of China. They rely on exports for their livelihoods; now, they can’t ship, so they have no income; while American consumers only face short-term shortages, not monetary losses.”
On April 23, Vice President Vans stated during his visit to India that the US had made a “very clear proposal” to Russia and Ukraine, hoping to end the ongoing three-year Russia-Ukraine conflict. However, as of now, no progress seems to have been made regarding the agreement. He warned that if both Russia and Ukraine do not accept the agreement, the US will no longer mediate.
Vans said, “We have made it clear to both Russia and Ukraine, we have made significant diplomatic efforts and fieldwork, and now it’s up to Russia and Ukraine to decide—to accept the agreement or the US will withdraw.”
Vans emphasized that the only way to truly stop the slaughter is for both sides to lay down their weapons, end the conflict, and start rebuilding a better Russia and Ukraine.
Vans’s ultimatum was not without basis. The day before he issued the ultimatum, the US State Department announced that Secretary of State Rubio would not attend the peace conference in London on the 23rd, with Ukraine’s envoy Kellogg representing the US at the meeting.
Rubio subsequently posted on the X social platform stating that he would continue to monitor the discussions after the London conference and planned to reschedule his trip to the UK in the coming months.
Rubio’s actions were not abrupt; as early as April 18, he had suggested that the US might withdraw from the peace negotiations to end the war “in a few days.” President Trump later told the media that Rubio was “right.”
The UK Foreign Office confirmed Rubio’s absence from the peace conference and announced a downgrade in the level of the London meeting, hosting a closed-door meeting without media access. It is expected that officials from the US, UK, France, and Germany will continue discussions on the ceasefire framework presented by the US.
It is reported that the reason the Russia-Ukraine agreement cannot be signed smoothly is due to significant differences between Russia and Ukraine. For instance, Ukrainian President Zelensky made it clear that Ukraine would not accept Russia’s annexation of Crimea or recognize the current Russian occupation in eastern Ukraine. Zelensky emphasized that these actions violate the Ukrainian constitution and there is “nothing to talk about.”
An official familiar with the US ceasefire framework told CNN that the Ukrainian position is the primary reason for the current deadlock in negotiations.
When asked if the US hopes to “freeze the existing border,” Vans responded, “No, I didn’t say that. What I said is to redefine the border in the places where conflict arose between Russia and Ukraine. This means that both Ukraine and Russia will have to give up some of the territories they currently own. In other words, both countries need to conduct some territorial exchanges.”
Previously, Moscow had delayed on the ceasefire negotiations, rejecting the US’s early proposal agreed by Kyiv for a 30-day truce. However, under pressure from the US to exit the negotiations, Ukraine and Russia expressed willingness to negotiate for the first time. On April 21, Putin proposed the possibility of direct negotiations with Ukraine to stop attacks on civilian targets but noted the need for further discussions on defining civilian targets.
Following the men’s singles defeat in the World Cup, there have been significant personnel changes in the leadership of the Chinese Table Tennis Association. On April 23, Liu Guoliang, Chairman of the Chinese Table Tennis Association, suddenly stepped down, with Wang Liqin taking over, and renowned player Ma Long as Vice Chairman. Liu Guoliang, with the shortest tenure of any former chairman of the Table Tennis Association, has garnered attention.
According to official reports, the 10th Member Representative Conference of the Chinese Table Tennis Association held its second meeting in Beijing on the 23rd, formally approving Liu Guoliang’s resignation as Chairman, and endorsing Wang Liqin as the new Chairman, with Ma Long and Gao Yiyi as Vice Chairmen.
Regarding Liu Guoliang’s departure, Liu Guoyong, Deputy Director of the State Sports General Administration, revealed at the meeting that Liu Guoliang had voluntarily offered to resign.
Liu Guoliang, 49, was the first athlete to achieve an Olympic, World Championships, and World Cup table tennis grand slam.
After retiring in 2002, Liu Guoliang became a coach and successively served as the head coach and general coach of the Chinese men’s table tennis team.
In 2018, Liu Guoliang took over as Chairman of the Chinese Table Tennis Association.
In 2020, Liu Guoliang became the Chairman of the World Table Tennis Professional League.
In 2021, Liu Guoliang was elected as the Executive Vice President of the International Table Tennis Federation and later became the 1st Vice President.
In April 2023, Liu Guoliang was re-elected as the 10th Chairman of the Chinese Table Tennis Association.
According to relevant regulations, the Chairman of the Table Tennis Association changes every four years, with a maximum of two consecutive terms. Liu Guoliang did not complete his second term and resigned during his tenure.
News of Liu Guoliang’s resignation quickly trended online and sparked discussions.
Some netizens praised Liu Guoliang’s savvy move, stating that with the state of Chinese table tennis, staying would have led to shouldering the blame. By leaving now, he can leave with dignity intact.
Some commentators believe that Liu Guoliang’s departure is related to the defeat in the competition. On April 20, the 2025 International Table Tennis Federation World Cup concluded in Macau. In the men’s singles final, Brazilian player Hugo Calderano defeated Chinese player Lin Shidong with a score of 4-1, winning the championship. This marked the first time since the 2017 World Cup that Chinese men’s table tennis was defeated in the “three major tournaments,” causing a stir.
Although Liu Guoliang resigned following the competition loss, as early as January this year, well-known sports media person He Xiaolong had revealed that Liu Guoliang had lost control over the Chinese Table Tennis Association and the International Table Tennis Federation, facing difficult circumstances where he couldn’t even make a move.
At that time, He Xiaolong’s revelation was not baseless. Before this, Liu Guoliang had consecutively missed four important competition events, including the Asian Championships.
At the time, some speculated that Liu Guoliang would resign at any time and predicted the successor. For example, mainland media Sina forecasted that Liu Guoliang would be removed from office, with three potential successors, including Wang Liqin, the current Vice Chairman of the Table Tennis Association.
This concludes today’s news. If you have any thoughts, feel free to leave a comment, and let’s discuss together.
– Production Team of “Epoch Focus”