The Chinese lantern industry appears relatively stable and resilient in the face of the global trade war. The following points can explain why Chinese lanterns have not been significantly affected by the trade war:
1. Stable market demand
The demand for colored lights in the Chinese market is relatively stable, especially during traditional festivals and large-scale celebration events. The lantern festival culture in China is profound, such as the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival), the Spring Festival and other festivals can not do without colored lanterns. Therefore, even in the face of challenges in international trade, the domestic market still maintains a stable demand for lanterns.
2. Strong autonomy in production and supply chain
China has a complete production chain for colored lights, which can be completed domestically from design, manufacturing to material supply. This high degree of autonomy reduces dependence on international supply chains, making the industry less susceptible to changes in the international trade environment. Meanwhile, localized production and supply have also helped reduce production costs and enhance the industry's risk resistance.
Colored lantern from China
3. Diversification of export markets
Although the trade war may have an impact on certain export markets, China's lantern export market is very diverse. Chinese lanterns are not only exported to the United States, but also widely sold to various regions such as Europe, Southeast Asia, and the Middle East. The diversification of this market allows Chinese lanterns to make up for some of the damaged sales through other markets.
4. Technological and design innovation
The Chinese lantern industry continues to innovate in technology and design, improving the added value and competitiveness of its products. Whether in the application of energy-saving technology or the design aesthetics of colored lights, Chinese companies are constantly innovating. This innovative ability helps maintain market competitiveness and reduce the negative impact of trade wars.
5. Policy support
The support of the Chinese government for the lantern industry is also one of the key factors. The government has introduced a series of supportive policies, such as subsidies, tax incentives, and export tax rebates, to help businesses mitigate the impact of the trade war. At the same time, the government is actively promoting international cooperation, exploring new markets, and further mitigating the negative impact of the trade war.
6. Strong industrial foundation
Zigong Lantern Festival Company, Lantern Production Manufacturer, Sichuan Zigong Shangmei Lantern Company. The Chinese lantern industry has a strong industrial foundation, including mature production technology, abundant human resources, and a complete supply chain. This solid industrial foundation enables Chinese lanterns to better cope with various difficulties when facing external challenges.
Chinese lantern
7. Cost advantage
The production cost of Chinese lanterns is relatively low, mainly due to lower labor costs and the economic benefits of large-scale production. Even in the face of international trade barriers, this cost advantage still enables Chinese lanterns to maintain strong market competitiveness.
8. Brand and market influence
Some well-known Chinese lantern brands have established a good reputation in the international market. The market influence and customer loyalty of these brands also helped them maintain market share in the face of trade wars. The brand effect and market recognition provide these enterprises with additional risk resistance capabilities.
summary
The Chinese lantern industry's ability to resist the impact of the trade war is the result of multiple factors working together. From the stability of market demand, the autonomy of production and supply chains, to technological innovation and policy support, various factors have jointly enhanced the resilience and risk resistance of the industry. Despite the increasing uncertainty in the global trade environment, the Chinese lantern industry, with its inherent advantages and adaptability, is still able to maintain relatively stable market performance.
