In the face of increasingly high tariff barriers on the international trade stage, Chinese glass product and candle craft enterprises are quietly initiating a global repositioning of their supply chains.
A Shandong-based glass group saw its 2024 exports to the U.S. plummet by 45% due to additional U.S. tariffs. However, by utilizing a transshipment route through Malaysia, its export value for the first half of 2025 had recovered to 90% of the same period last year.
Such stories are becoming increasingly common in China's glassware and candle industry. As major global markets continue to impose anti-dumping duties and additional tariffs on products made in China, companies are heading to Southeast Asia, Mexico, and other locations to investigate the feasibility of setting up factories.
01 High Trade Barriers, Soaring Export Costs
In recent years, Chinese glass product exports have encountered frequent anti-dumping and high tariff barriers erected by multiple countries. Glass containers, vessels, glass fibers, and other products have been particularly hard hit.
Countries including the United States, the European Union, Australia, India, and Brazil have successively launched anti-dumping investigations and imposed high tariff measures. These measures pose significant challenges for Chinese glass product exporters.
Taking the U.S. market as an example, for a batch of glass container export products with an FOB price of $1,000 per ton, adding the maximum 30% anti-dumping duty and 45% additional tariff results in a comprehensive tariff rate that can reach 75%.
Such high tariffs directly erase or even invert export profit margins, causing Chinese products to lose their price competitiveness in the international market.
02 Rise of Transshipment Trade, Legally Avoiding Tax Burden
To cope with this export "cold snap," more and more Chinese companies are adopting Southeast Asian transshipment trade methods. Represented by transshipment through Malaysia, this approach legally and compliantly optimizes the place of origin to effectively circumvent anti-dumping duties.
The operational process of transshipment trade has become quite mature: first, ship Chinese goods to a Malaysian Free Trade Zone (such as Port Klang FTZ); utilize local bonded warehousing policies, meaning the goods are not counted as formal imports into Malaysia.
Then, perform container swapping, label (re-labeling), and packaging processing within the bonded zone to sever ties to the original export path and update the product's identity tags; apply for a Malaysian Certificate of Origin (CO), obtaining export qualifications indicating a non-Chinese origin.
Finally, export to the target country under the identity of "Made in Malaysia," avoiding anti-dumping and tariff measures aimed at Chinese-origin products. This model is legal and compliant and has been verified by (practical operations) in multiple countries.
03 Significant Cost Advantages, Corporate Profits Rebound
According to actual case calculations, although companies need to pay operational costs of $80-120 per ton for transshipment trade, they can avoid paying tax costs as high as $750 per ton, resulting in an overall cost reduction of over 80%.
For an annual export volume of 3,000 tons of glass containers, transshipment can save approximately $2 million in tax liabilities and ensure stable export orders without loss. This is highly significant for glass product companies with thin profit margins.
The case of a Shandong glass company is more (intuitive): In 2024, the company's exports of glass bottles to the U.S. were hit hard by high tariffs, and export value fell by 45% year-on-year.
In early 2025, the company adopted the Malaysian transshipment route, set up a storage point in the Port Klang bonded area, completed packaging replacement and CO applications, and successfully exported glass products to the U.S. under the "Made in Malaysia" identity.
Within two quarters, the company's exports recovered to 90% of the same period last year, and customer satisfaction also improved significantly.
04 Overseas Factory Layout, Global Production Network
As global anti-dumping supervision tightens and requirements for origin transparency increase, more companies are considering direct overseas factory establishment, even though transshipment trade is effective.
Qingdao Boruiheng Trading Co., Ltd. established an overseas candle production factory in Binh Duong Province, Vietnam, as early as 2016 and registered the "Supreme Lights" brand for operation.
In 2017, the company established a trade sales company in New York, USA. By 2021, the company's total export value reached $30 million, and in 2022 it became a local supplier for Walmart US.
Pu Xiao, manager of a New York-based company under the Americas Division of Hongdou Group, also led his team to achieve remarkable growth against the trend: from January to July 2025, they had signed contracts worth $37.28 million, completing 150% of the annual target.
They decided last year on a strategy to quickly transfer customers' current orders to overseas production. Upon returning, they immediately went to Cambodia and Vietnam to make arrangements, helping customers safely transfer orders to overseas production bases.
05 Regional Production Networks, Nearshoring Becomes a Trend
The overseas strategies of Chinese companies have evolved from initial "emergency plans" to "long-term supply chain strategies." Malaysia, with its policy (dividends), cost advantages, and compliance security, has become a core node in the global layout for glass products.
But it's not just about building factories in Southeast Asia; nearshoring production is becoming a new trend. Chinese companies are boldly advancing into the heart of core consumer markets like North America and Europe, competing directly with international giants.
Linglong Tire chose to build a factory in Serbia, Sentury and Guizhou Tire (laid out) in Morocco, and Sailun chose Mexico and Egypt for factory construction. These moves indicate that Chinese companies are adopting a model of "nearshore production, nearshore distribution."
Through a triangular support system of "Europe-Africa-Middle East + Southeast Asia + North America," companies can respond quickly to market demands and further reduce logistics costs.
Zhongya candle factorywhatsapp: +86//187//3296//0113wechat: +86//156//9035//5727Email: Betty@kangdecandle.com
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