Chinese Companies Offer Commissions to Indian Exporters to Route Goods to the U.S. Amid High Tariffs

Several Chinese companies, facing setbacks due to high U.S. tariffs, are reaching out to Indian exporters with commission-based proposals to help route their products into the American market, according to industry sources.

This trend has become evident at the ongoing Canton Fair in Guangzhou, China, where Indian companies participating in the event have reported receiving such offers. The fair, which began on April 15, will run until May 5.

Chinese firms engaged in electronics, machinery, textiles, and home décor are offering their products to international buyers through Indian intermediaries. These companies are proposing that Indian exporters purchase goods from them and sell to U.S. customers, in exchange for a commission on each transaction.

The tariffs imposed by the U.S. have severely impacted Chinese exporters. While Chinese goods currently face tariffs of up to 145%, Indian goods are subject to a reciprocal tariff of 10%, which is expected to increase to 26% after 90 days.

During Donald Trump’s first presidential term, similar tariffs led many Chinese firms to shift operations to Vietnam to continue exporting to the U.S. However, with the current U.S. tariffs on Vietnamese goods now as high as 46%, Chinese exporters are increasingly looking to India as an alternative trade route.

A senior official from the Federation of Indian Export Organisations (FIEO) noted that due to restrictions on Chinese investments in India, setting up manufacturing units in the country remains challenging for Chinese firms. As a result, Chinese companies are now offering co-branding opportunities to Indian businesses—allowing them to sell Chinese goods under joint branding from India.

In the absence of Chinese products in the U.S. market, it remains to be seen how much opportunity the American government will extend to Indian exporters to fill the gap, the official added.