Business Daily (BBC World Service)

Episode: Yiwu: Christmas City

Date: December 24, 2025
Host: Ed Butler

Episode Overview

In this festive edition of Business Daily, Ed Butler explores Yiwu, a city in eastern China dubbed the "Christmas capital of the world." The episode dives into how Yiwu became the unrivaled global hub for Christmas decorations and other small commodities, the entrepreneurial spirit that drives its bustling market, and how trade tensions—specifically U.S.-China tariffs—are affecting both buyers and sellers in the Christmas supply chain. Experts, exporters, and business owners add their perspectives on market adaptation, innovation, and optimism in the face of economic challenges.

Key Discussion Points & Insights

1. Yiwu: The Global Christmas Hub

• Yiwu’s Rise:
  • Yiwu began in the 1980s as a rural trading center and now boasts a sprawling international trade city filled with 75,000 booths and 50,000 shops selling small commodities (01:26–05:25).
  • Ashley Dudarenok: “Yiwu is the world's capital of small commodities, the Christmas capital of the world. They are able to assemble a Christmas ball in about two seconds.” (01:26)
• Scale & Impact:
  • 60% of the world’s Christmas ornaments are made in Yiwu.
  • Yiwu supplies about 500,000 buyers from 200 countries.
  • Han Lin: “Yiwu City… has 2.1 million different types of products for sale… divided by 75,000 booths.” (03:43)
• Specialization Across China:
  • Other Chinese cities specialize similarly—umbrellas, shoes, underwear—creating economies of scale and competitiveness (04:34–05:25).

2. The ‘Cheap, Simple, Fast’ Ethos

• Low-End Focus:
  • Yiwu has traditionally dominated the low-cost segment, prioritizing affordability and mass production over luxury or high-end goods.
  • Renault Joran: “It’s one time use and then throw away… They’ve always been very focused on the low end of the market... Buyer's keep saying, too expensive, too expensive... So the whole operations are geared around that.” (05:57)
• Enterprise Spirit & Innovation:
  • Recent years have seen significant automation and innovation in production, increasing efficiency by up to 20%.
  • Yiwu is evolving beyond being just a low-cost supplier to becoming an innovation and logistics hub.
  • Ashley Dudarenok: "...their newly developed machines and factory floors ultimately increased their efficiency by about 20%." (08:04)
• Domestic & Global Reach:
  • Domestic Chinese consumption of Christmas decor is rising—not just for Christmas, but as year-round home decoration (08:49).

3. Tariffs, Trade Wars & Pricing Pressures

• US-China Tariffs:
  • U.S. tariffs, some as high as 100%, have caused Yiwu’s exporters to shift business models and target new markets (11:22–12:13).
  • Han Lin: “We used to have buyers from the U.S.; now we don’t care. We have rich buyers from elsewhere. Doing business with them is good.” (12:54)
• Effects on US Retailers:
  • U.S. retailers like Balsam Hill have faced significant price hikes (10–20% increases), leading to canceled product lines such as snow globes and advanced fairy lights.
  • Mac Harmon: “All the advanced ones [Christmas lights] are generally manufactured in China, and those for most of this year had a 63% tariff. And... we canceled those orders.” (13:48)
  • Mac Harmon: “Across all U.S. retailers, Christmas tree prices are up 10 to 20%... At the same time, if you have a child, it’s really hard to tell them that you’re not getting a Christmas tree this year.” (14:47)
• Manufacturing Reality:
  • Pre-lit Christmas trees, for example, have never been made in the USA due to labor costs and willingness; thus, almost all production is offshored to Asia.
  • Mac Harmon: “99.9% of all pre-lit Christmas trees are all made in Southeast Asia.” (15:36)
• Industry Uncertainty & Adaptation:
  • Companies expect tariffs to remain and are preparing to raise prices again if no trade exemptions are introduced for Christmas goods (16:42).
  • Mac Harmon: “If the tariffs stay where they are today, the whole industry will need to raise prices again next year.” (16:42)

4. Adaptation & Resilience

• Market Diversification:
  • Yiwu's traders have rapidly diversified into Europe, Latin America, and other markets, mitigating US losses.
  • Ashley Dudarenok: “Yiwu’s Christmas exports actually grew about 23% year over year between Q1 and Q3, 25… Latin America plus 17%, EU plus 45% year over year.” (18:06, 18:38)
• Future Outlook:
  • Despite challenges, there is “mild optimism” in China’s export sector, with hopes for capturing new market shares and leveraging innovation.
  • Ashley Dudarenok: “They are mildly optimistic, but not because they think what was gone will come back in exactly that shape and form.” (19:11)

Notable Quotes & Memorable Moments

• Ashley Dudarenok (01:26):
  “Yiwu is the world's capital of small commodities, the Christmas capital of the world… They are able to assemble a Christmas ball in about two seconds."

• Han Lin (03:43):
  “If you were to imagine that Santa Claus has outsourced all of the production of everywhere and everything he produces, it would likely be found in Yiwu City.”

• Renault Joran (05:57):
  "It’s one time use and then throw away… They’ve always been very focused on the low end of the market... So the whole operations are geared around that."

• Mac Harmon (14:47):
  “Across all U.S. retailers, Christmas tree prices are up 10 to 20%... it just makes it more expensive to enjoy and celebrate the holiday together."

• Mac Harmon (15:36):
  "99.9% of all pre-lit Christmas trees are all made in Southeast Asia."

• Ashley Dudarenok (19:11):
  “There is a sense of…resilience. I would say people are mildly optimistic. ...they do not believe that US business is going to come back, but they believe that they will be able to capture market share from around the world.”

Timestamps for Major Segments

• [01:10] – Ed Butler introduces the episode’s central question: Where does our Christmas stuff actually come from?
• [01:26] – Ashley Dudarenok introduces Yiwu and shares its significance.
• [03:15] – Han Lin discusses the entrepreneurial spirit driving Yiwu’s marketplace.
• [05:57] – Renault Joran explains the focus on low-cost products and buyer pressure.
• [08:04] – Ashley Dudarenok elaborates on innovation and efficiency in Yiwu factories.
• [11:22] – Discussion on tariffs and their political motivations; export market shifts.
• [13:29] – Mac Harmon on direct impacts of tariffs for U.S. retailers.
• [14:47] – Discussion of price increases and canceled product lines due to tariffs.
• [16:42] – Future prospects and industry-wide adaptation to persistent tariffs.
• [18:06–19:54] – Export diversification, optimism, and strategies for future growth.

Conclusion

This insightful episode paints a vivid picture of Yiwu’s global influence on Christmas—highlighting not only the city’s unmatched scale and efficiency, but also how it, and the world’s Christmas trade, are adapting under the pressure of shifting global economics and politics. The stories and perspectives reveal resilience, ingenuity, and a determination to keep the world’s holiday spirit alive, even as prices and trade partners change.