US-Iran conflict affects Yiwu, China; Middle East orders drop by over 50%
The US-Iran conflict has severely impacted the foreign trade in Yiwu, China. During the peak Ramadan season, Middle East order volumes dropped by over 50%, forcing many businesses into cash flow crises and potential closures.
📋 Article Processing Timeline
- 📰 Published: April 25, 2026 at 17:51
- 🔍 Collected: April 25, 2026 at 18:01 (9 min after Published)
- 🤖 AI Analyzed: April 25, 2026 at 18:16 (14 min after Collected)
Key news on the US-Iran conflict
Central News Agency
(Central News Agency reporter Li Ya-wen, Shanghai, 25th) The conflict between the United States and Iran has affected the foreign trade of Yiwu in Zhejiang, China, with order volumes from the Middle East dropping by more than 50% year-on-year. The traditional Ramadan is the peak season for Yiwu's foreign trade shipments to the Middle East, but the conflict has disrupted the original rhythm, and some shops mainly targeting the Middle East market are facing the pressure of suspending or closing business.
Yiwu is one of the main wholesale markets for international small commodities, known as the "Capital of the World's Small Commodities." China Newsweek disclosed on the 25th that Yiwu's foreign trade is being affected by the US-Iran conflict. Merchants are unable to ship goods normally, creating survival pressure for stores primarily serving the Middle East market.
"Fighting in the Middle East has disrupted the peak consumption season of Ramadan," said Yu Qingwen (pseudonym), who is engaged in foreign trade in Yiwu. He mentioned that Ramadan in the Middle East is the peak period for Yiwu's foreign trade shipments. The US-Iran conflict disrupted the original rhythm this year. Suppliers, fearing they won't receive the final payments, have paused shipments, and Middle Eastern clients, worried about not receiving the goods, have notified sellers to "hold off on shipping."
Countries like Iraq, Saudi Arabia, and the United Arab Emirates are Yiwu's major trading partners in the Middle East. Before Ramadan each year, Middle Eastern importers focus on purchasing food and daily necessities. Yu Qingwen noted that in previous years, a small department store supplier in Yiwu could see a 50% to 100% increase in order volume during Ramadan; however, from March to April this year, the volume sold was only just over 1 million RMB (about 4.6 million NTD), less than a tenth of normal levels.
Yu Qingwen observed that recently, the presence of Middle Eastern clients in the market has decreased by about 50%, although the demand for Spanish translation in foreign trade WeChat groups has significantly increased. As international flights gradually resumed in April, South American clients filled some of the gaps, and some merchants who originally focused on Middle East business have turned to the South American market.
Yu admitted that the unit purchase prices from South American clients are lower and the transaction scale is smaller. For the same goods, the profit of one shipping container might only be a fifth of a Middle East order. South American clients have not been able to fully make up for the shortfall of Middle Eastern clients; some Yiwu merchants focusing on the Middle East market are facing the pressure of suspending or shutting down their businesses due to sharply decreased revenue and profits.
Xu Yan, president of the Yiwu Cross-border E-commerce Association, previously told the media that merchants within the association who mainly supply the Middle East market have seen a significant decline in orders, with some seeing their Middle East order volume drop by more than 50% compared to the same period last year.
The conflict has brought many uncertainties to foreign trade. Sun Hanshan, founder of the Shenzhen Cross-border Online Group, believes that the fundamental pressure behind this uncertainty is capital turnover. Every link—from factory production, maritime transport, to overseas warehouse layout—requires holding goods, often necessitating tens of millions of yuan, putting immense pressure on merchants.
Sun Hanshan mentioned that the post-war market will inevitably see a rebound and new demand. As the conflict continues, inventory in the Middle East becomes tight, and commodities are in short supply. Coupled with blocked exports of crude oil and raw materials from the Middle East, the cost of end products will rise, and commodity unit prices are very likely to see a substantial increase. The cost pressure will ultimately be transmitted to both ends of the trade chain. (Editor: Yang Sheng-ju) 1150425
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Central News Agency
(Central News Agency reporter Li Ya-wen, Shanghai, 25th) The conflict between the United States and Iran has affected the foreign trade of Yiwu in Zhejiang, China, with order volumes from the Middle East dropping by more than 50% year-on-year. The traditional Ramadan is the peak season for Yiwu's foreign trade shipments to the Middle East, but the conflict has disrupted the original rhythm, and some shops mainly targeting the Middle East market are facing the pressure of suspending or closing business.
Yiwu is one of the main wholesale markets for international small commodities, known as the "Capital of the World's Small Commodities." China Newsweek disclosed on the 25th that Yiwu's foreign trade is being affected by the US-Iran conflict. Merchants are unable to ship goods normally, creating survival pressure for stores primarily serving the Middle East market.
"Fighting in the Middle East has disrupted the peak consumption season of Ramadan," said Yu Qingwen (pseudonym), who is engaged in foreign trade in Yiwu. He mentioned that Ramadan in the Middle East is the peak period for Yiwu's foreign trade shipments. The US-Iran conflict disrupted the original rhythm this year. Suppliers, fearing they won't receive the final payments, have paused shipments, and Middle Eastern clients, worried about not receiving the goods, have notified sellers to "hold off on shipping."
Countries like Iraq, Saudi Arabia, and the United Arab Emirates are Yiwu's major trading partners in the Middle East. Before Ramadan each year, Middle Eastern importers focus on purchasing food and daily necessities. Yu Qingwen noted that in previous years, a small department store supplier in Yiwu could see a 50% to 100% increase in order volume during Ramadan; however, from March to April this year, the volume sold was only just over 1 million RMB (about 4.6 million NTD), less than a tenth of normal levels.
Yu Qingwen observed that recently, the presence of Middle Eastern clients in the market has decreased by about 50%, although the demand for Spanish translation in foreign trade WeChat groups has significantly increased. As international flights gradually resumed in April, South American clients filled some of the gaps, and some merchants who originally focused on Middle East business have turned to the South American market.
Yu admitted that the unit purchase prices from South American clients are lower and the transaction scale is smaller. For the same goods, the profit of one shipping container might only be a fifth of a Middle East order. South American clients have not been able to fully make up for the shortfall of Middle Eastern clients; some Yiwu merchants focusing on the Middle East market are facing the pressure of suspending or shutting down their businesses due to sharply decreased revenue and profits.
Xu Yan, president of the Yiwu Cross-border E-commerce Association, previously told the media that merchants within the association who mainly supply the Middle East market have seen a significant decline in orders, with some seeing their Middle East order volume drop by more than 50% compared to the same period last year.
The conflict has brought many uncertainties to foreign trade. Sun Hanshan, founder of the Shenzhen Cross-border Online Group, believes that the fundamental pressure behind this uncertainty is capital turnover. Every link—from factory production, maritime transport, to overseas warehouse layout—requires holding goods, often necessitating tens of millions of yuan, putting immense pressure on merchants.
Sun Hanshan mentioned that the post-war market will inevitably see a rebound and new demand. As the conflict continues, inventory in the Middle East becomes tight, and commodities are in short supply. Coupled with blocked exports of crude oil and raw materials from the Middle East, the cost of end products will rise, and commodity unit prices are very likely to see a substantial increase. The cost pressure will ultimately be transmitted to both ends of the trade chain. (Editor: Yang Sheng-ju) 1150425
Choose to stand with the facts. Every sponsorship from you is the power to protect freedom of the press.
Download the CNA "First Hand News" APP to grasp the latest news instantly.
The text, images, and audio/video of this website are not to be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.