As trade tensions with the U.S. deepen, China’s leading internet companies are rolling out large-scale programs to help exporters shift their focus to domestic sales. According to a Financial Times report, this coordinated effort aims to soften the economic blow from new tariffs and policy changes that have made exporting to the U.S. much less viable.
Alibaba, JD.com and Pinduoduo Take the Lead
Alibaba (BABA) has launched a task force to work with exporters across more than 10 provinces. The company’s online marketplaces, Taobao and Tmall, offer higher commissions and better visibility to help 10,000 exporters sell at least 100,000 products in China. Its supermarket chain, Freshippo, is also creating special access for these suppliers to get shelf space more easily.
JD.com (9618) committed 200 billion yuan (about $27 billion) to buy products directly from exporters and promote them on a new section of its platform. The company is also making it easier for these businesses to join its network and access its warehouses.
Meanwhile, Pinduoduo, now known as PDD Holdings Inc. (PDD) has pledged to spend 100 billion yuan ($13.7 billion) to support merchants affected by the U.S. ending of the “de minimis” duty exemption, which previously allowed small packages (under $800) to enter the U.S. without tariffs. Now, exporters face duties as high as 125%, making overseas sales far less profitable. Pinduoduo says it will help small and medium manufacturers shift to the local market and cover some of the added costs.
Other Tech Firms Join In
Other major platforms are also getting involved. Baidu (BIDU) will let one million companies advertise for free in livestreams using AI-generated “virtual hosts.” Ride-hailing company DiDi (DIDIY) plans to spend 2 billion yuan to boost local jobs and consumption. Tencent (TCEHY), Meituan (MPNGF), and ByteDance (owner of TikTok and Douyin) are launching similar programs.
A Question of Strategy and Feasibility
These moves are not just economic; they carry political weight too. Analysts say Chinese tech firms are acting in response to government expectations and growing patriotic sentiment. Following tighter government control since 2020, many companies are eager to show they are aligned with national goals.
But is this strategy sustainable? While the funding and resources are significant, shifting from export to domestic markets is difficult. It depends on whether consumer demand at home can absorb the extra supply and if these exporters adapt quickly. The effort is ambitious, but success will likely vary by sector and company. For now, it’s a bold bet on self-reliance.
Using Tipranks’ Comparison Tool can help gain a wider perspective on the Chinese giants appearing in the article and explore their overall financial performance:
