31 July 2025
“We are looking for European customers to replace the American ones.” This is according to Leo Zhao, president of the Pinghu Bags Industry Association and chairman of the Newcomer Group, a company that produces suitcases and bags in Pinghu, Zhejiang Province, China. Zhao, hit hard by US tariffs, looks to the EU as he reviews the situation in the Pinghu district, which specializes in luggage production. Report by La Conceria.
What are the consequences of US tariffs in the Pinghu district?
Approximately 80% of our production is destined for American and European brands such as Samsonite, Carpisa, and others. The entire production chain is present in the district, from tanneries to aluminum producers to zipper manufacturers. Order volumes from American customers have declined, with an overall decrease of 30-40%. Only those who cannot do without China are ordering.
Are Chinese companies closing and laying off workers?
Yes, but not many. In fact, new companies are opening and new brands are entering the market. Then there’s the push from the domestic market, but we urgently need more European customers to recoup what we’ve lost due to US tariffs. This is an action that looks to the EU.
Is it true that many Chinese companies have moved production elsewhere?
Yes, it’s true. To expand their market presence and exploit local resources, they have moved part of their production to Southeast Asia.
But if a deal were reached between China and the US, would everything suddenly go back to normal?
Yes, both would benefit. China’s productivity is two or three times higher than that of other countries, largely because it uses technology more widely.
What is your vision for the future?
It’s not easy to make long-term forecasts; at most, we can plan for a year, especially given the political instability in the United States. To remain competitive, we must invest in R&D, increase quality, and protect intellectual property. It’s no longer enough to focus on quantity; we must focus on the quality of our production and our products.
We bring leather, material and fashion businesses together: an opportunity to meet and greet face to face. We bring them from all parts of the world so that they can find fresh partners, discover new customers or suppliers and keep ahead of industry developments.
We organise a number of trade exhibitions which focus on fashion and lifestyle: sectors that are constantly in flux, so visitors and exhibitors alike need to be constantly aware both of the changes around them and those forecast for coming seasons.