China - May 21, 2025 Storyline Tariff reduction sparks surge in US-bound shipments from China [Voice_over] Inside a warehouse here in Shenzhen, freight workers are racing against time to process shipments. [Stand_up] Dai Kaiqi, Reporter: "With the recent drop in tariffs, American clients, who had previously paused their orders, are now reaching out to Chinese businesses again—picking up where they left off. The surge in volume has been so dramatic that businesses here are feeling the pressure to keep up." [Voice_over] The sudden uptick in business has left little time to celebrate the tariff relief. For many, there's euphoria—but they're also busy. [Sound_bite] Ling Hushun, general manager, Shenzhen 1st International Logistics Group Co. Ltd.: "With tariffs now lowered, we're seeing a short-term explosion in demand. You can see it in the numbers—we used to have empty warehouse space around this time last week. Now, the volume is probably more than triple what it was." [Voice_over] The drop in tariffs is a major boost for logistics businesses here, but it also brings new challenges. [Sound_bite] Ling Hushun, general manager, Shenzhen 1st International Logistics Group Co. Ltd.: "Shipments have surged so suddenly that neither we nor the airlines were fully prepared. There are still capacity shortages. Airlines are now adding flights, and rates are going up. Compared to just a while ago, freight costs have risen by at least 10 yuan, probably more." [Voice_over] Overall, Ling and many of his peers in the logistics industry, along with upstream cross-border sellers, remain cautious, as no one is ready to call this a stable recovery just yet. But to Ling, the recent deal simply highlights how much the US still relies on what China produces. [Sound_bite] Ling Hushun, general manager, Shenzhen 1st International Logistics Group Co. Ltd.: "Trade between China and the US can't just stop on a whim. Chinese products remain highly recognised in the US. This sudden wave of shipments makes that crystal clear." [Voice_over] Just a short drive from Ling's company, we visit Pago Logistics, where its CEO is also scrambling to handle a surge in US-bound goods. [Sound_bite] Tan Fangqiang, CEO, Pago Logistics: "Most of the goods you see in this warehouse right now are headed for the US." [Voice_over] Amid rising global uncertainty, many US-based clients are now opting to ship large volumes to American warehouses in advance, securing storage and locking in costs. Once orders come in, goods can be dispatched directly from those warehouses to customers. [Sound_bite] Tan Fangqiang, CEO, Pago Logistics: "I noticed a significant spike in orders after the 14th—about a 40 to 60 percent increase. If this pace continues, I expect we could hit an 80 percent increase soon." [Voice_over] Although freight costs are rising, Tan says the increases are minor compared to the cost of tariffs. Even with higher prices, shipments continue to roll in. [Sound_bite] Tan Fangqiang, CEO, Pago Logistics: "Can the US really decouple from Chinese manufacturing? I don't think so—not in the short term. Look at big US retailers like Walmart and Costco—70 to 80 percent of their goods come from China. When tariffs go up, it's consumers who end up paying more." [Stand_up] Dai Kaiyi, Reporter: "It's an uncertain time for logistics companies, as the surge in US orders shows just how quickly markets can shift. With tariffs reduced, demand is back—and so are the challenges: keeping up with fast-paced delivery and a rapidly changing trade environment." [Restrictions : No access Chinese mainland]