Amid ongoing trade tensions between the United States and China, Chinese firms are increasingly turning to Indian exporters to help fulfill US orders. At the Canton Fair 2025 in Guangzhou, several Indian companies reported receiving requests from Chinese businesses seeking collaborations. Indian firms are being offered commissions, especially in sectors like hand tools and electronics, while Indian and US trade talks continue.
In a significant shift driven by trade tensions, Chinese firms are approaching Indian exporters to help complete their US orders, as high tariffs on Chinese goods reshape global supply chains. The development was highlighted during the ongoing Canton Fair 2025 in Guangzhou, China, the world’s largest trade fair.
Federation of Indian Export Organizations (FIEO), India’s apex trade promotion body under the Ministry of Commerce, revealed that many Indian companies have been contacted by Chinese businesses. Ajay Sahai, Director General of FIEO, stated that Indian exporters, particularly in sectors like hand tools, electronics, and home appliances, are seeing a surge in queries from China-based firms.
The move comes after the United States, under new tariff measures, imposed hefty reciprocal duties even on countries like Vietnam, pushing Chinese companies to explore Indian partnerships. Historically, Chinese exporters sought routes through Southeast Asian nations, but now India is becoming a favorable alternative despite its restrictions on Chinese investments.
At the Canton Fair, Chinese companies offered commissions to Indian firms in return for helping them fulfill existing US contracts. Sahai also mentioned optimism that some American firms might soon establish direct ties with Indian manufacturers, reducing intermediaries altogether.
One notable example is OayKay Tools, based in Jalandhar, Punjab, India. The company, specializing in hand tools manufacturing, confirmed it is in talks with both US-affiliated Chinese firms and Chinese exporters to manage orders for the American market.
The Indian government is also actively negotiating a potential trade deal with the United States, which could further enhance export opportunities for Indian firms and solidify India’s role as a strategic manufacturing hub in the evolving global landscape.
