Raytu Laser, Other Chinese Firms Go Against the Trend, Plan to Expand in US Despite High Tariffs
Miao Qi
DATE:  Apr 17 2025
/ SOURCE:  Yicai
Raytu Laser, Other Chinese Firms Go Against the Trend, Plan to Expand in US Despite High Tariffs Raytu Laser, Other Chinese Firms Go Against the Trend, Plan to Expand in US Despite High Tariffs

(Yicai) April 17 -- While some Chinese foreign trade firms are shifting their strategies to focus more on the domestic market to limit the impact of the US tariff hikes, others like Raytu Laser Technology have instead laid out plans to expand their presence in the world's largest economy.

Raytu Laser established a branch in New York on April 9, the day the US increased its tariffs on Chinese imports to over 100 percent. Ma Tongwei, the general manager of the Chinese laser cutting machine supplier, told Yicai that it was a "memorable day."

The company set up a branch in New York because it wishes to continue expanding sales in the US, Ma said, adding that even though it is very difficult to explore the US market under a trade war, "it is not as difficult as some may think."

Ma's confidence comes from the fact that even though double tariffs have reduced the competitive advantage of Raytu Laser's products in the US market, they still remain more cost-effective than competing products from Europe.

Thanks to technological breakthroughs, Raytu Laser managed to lower prices of laser cutting equipment to CNY100,000 to CNY200,000 (USD13,680 to USD27,370) from over CNY1 million (USD136,830). As a result, demand for the firm's products increased along with customers' motivation to replace manual work with more accurate and efficient laser cutting machines.

Ma also told Yicai that Raytu Laser's clients are "very frustrated" about the new US tariffs because they will have to bear all additional costs. However, for the sake of long-term cooperation, the company is considering giving up a reasonable amount of its profits in the future to meet them halfway.

Raytu Laser moved toward a business-to-business cross-border e-commerce model several years ago, with about 90 percent of its export business being online now, Ma said. It is because of its online business model that the company can keenly detect subtle changes in market demand and make corresponding adjustments, he added.

Despite remaining bullish about the US market, Ma explained that the main target market for Raytu Laser is Europe. Moreover, the firm has seen an increase in orders from markets such as Russia, Southeast Asia, and Turkey.

In recent years, the purchasing power of various European countries has declined, and customers' price sensitivity and budgets have been affected, Ma noted. But instead of creating obstacles, this brings extra opportunities for Chinese suppliers who usually pursue the ultimate cost-effectiveness.

Another Chinese firm planning to expand its presence in the US is Lameda Sports, a cycling clothing supplier. Its General Manager Jin Feiyan told Yicai that while the company mainly focuses on Europe and East Asia, it still intends to explore the North American market to complete its global market layout.

Lameda's exports to North America are small, so the US "reciprocal tariffs" will have a limited impact on its business, Jin said, adding that the fluctuations in the US market may instead be an opportunity for newcomers.

However, to offset the negative factors of tariffs, Lameda needs a more comprehensive and flexible layout, such as considering setting up overseas warehouses in regions around the US, she noted.

Jin explained that Lameda's plan comes from the confidence in the competitiveness of its products. She explained to Yicai that the company mainly adopts an independent design business model. Its 20 years of experience exporting to Europe and strong product research and development and design capabilities can provide customers with one-stop solutions.

Editors: Tang Shihua, Futura Costaglione

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Keywords:   US Market,Trade Dispute,Reciprocal Tariffs