Economic Watch: China's Yiwu sets global rhythm for Christmas trade

Businessmen from Kuwait select Christmas product samples at the Yiwu International Trade City in Yiwu, east China's Zhejiang Province, Dec. 17, 2025. (Xinhua/Liu Mingxiang)

YIWU, Zhejiang, Dec. 24 (Xinhua) -- While shoppers worldwide are still on the hunt for last-minute gifts, the real pulse of the global Christmas economy is beating strong in east China's Yiwu, the renowned "world's supermarket."

Kuwaiti merchant Kamel Mumen exemplifies a dynamic forward-thinking cycle. Amidst a rich variety of ornaments, he meticulously selects Santa hats -- not for this December, but for the next Christmas. His early planning is the norm here, where factories are deep in preparation for the next holiday season.

At the Yiwu Junhong Christmas Costumes & Gifts Factory, owner Jiang Jiangping is expected to roll out over 400 new products for the next Christmas. "After October, our focus shifts entirely to designing for the next year," said Jiang, whose factory offers nearly 2,000 items. "We've already created over 200 custom designs for European clients."

As the world's largest Christmas goods hub, Yiwu manufactures about two-thirds of the world's festive products, shipping over 20,000 varieties to more than 100 countries annually. Customs data reveals robust growth: exports in the first three quarters of 2025 hit 5.17 billion yuan (about 732.6 million U.S. dollars), a surge of 22.9 percent year on year.

This boom arrived earlier this year. Amid global trade uncertainties, foreign buyers are stockpiling well in advance. Orders that traditionally peaked in summer began flooding in by April this year. Yiwu's customs officials reported a staggering year-on-year increase of over 90 percent in May exports alone. June saw 890 million yuan in exports, half the first-half total, rising to 1.11 billion yuan in July and nearing August's 1.39 billion yuan.

This agility is powered by a formidable regional industrial ecosystem. Zhejiang's integrated support framework-- combining agile supply chains with policy, logistics, and financial backing -- ensures Yiwu's reliable delivery to the world.

Innovation is the cornerstone of Yiwu's competitive edge. At Yiwu Luochen Crafts, two dancing Santas, which are among the newest designs for next Christmas, move to holiday tunes.

"These products are priced one-third higher than traditional ones," said manager He Jun, noting that AI advances and rising market demands encourage his business to innovate, especially to develop interactive products continuously.

He noted that designing a dancing Santa usually involves collaboration with more than 20 supply-chain partners, forming a strong industrial ecosystem that enables his firm to roll out roughly 300 new designs annually.

Zhejiang Aoshan Crafts allocates 30 percent of annual profits to R&D. Using robotic arms, a Christmas ball can be assembled in just two seconds, and new machinery has raised productivity by 20 percent.

At a Christmas decor store in Yiwu, streetlamps with an artificial snowfall system draw crowds for photos. The company's manager, Long Xijin, noted that the system was independently developed in 2022 and secured a patent in the United States in 2024, making Yiwu the exclusive source for such products in the American market.

Cai Qinliang, secretary general of the Yiwu Christmas Products Industry Association, believes that continuous product innovation and increased R&D investment have strengthened the sector's export resilience.

In an era of supply chain flux, Yiwu has cemented its role beyond a mere sourcing destination. As local merchants put it: the world needs celebration, and celebration needs Yiwu. It has become essential infrastructure for the global festive economy and trade itself, setting the rhythm for Christmas worldwide -- one year ahead of schedule. ■

This photo taken on Dec. 17, 2025 shows "Hello 2026" hair decorations displayed at the Yiwu International Trade City in Yiwu, east China's Zhejiang Province. (Xinhua/Liu Che)