China's artificial nail hub highlights depth of US-China trade

While Chinese President Xi Jinping and his American counterpart Donald Trump prepare to discuss relations between the world's two largest economies, tens of thousands of workers in eastern China's Donghai on Thursday (September 17) were focused on producing a small, everyday item that puts international trade on the tip of the finger: artificial nails.

Donghai, a county of one million people in the eastern city of Lianyungang, produces about 40% of the global supply of press-on and handmade artificial nails, with annual sales exceeding $1 billion, according to Chinese media.

Factory owner Zhang Da, whose 200 technicians produce 20,000 sets of glittering, floral and Labubu-adorned nails each month, said the US is his largest market by volume.

"Our customers in the United States currently tend to place fairly large orders," Zhang said.

"We also have quite a lot of customers from other countries... There is a large quantity of orders from those markets, and they have many people involved in the industry."

Since opening his factory in 2018, Zhang said overseas demand has grown steadily to the point where he now receives international customers almost daily.

Ashley Dudarenok, founder of digital consultancy Chozan, said the rise of press-on nails reflects the growing popularity of "little luxuries", a trend in which consumers splurge on small, affordable non-essential items.

China has built a highly competitive beauty products ecosystem spanning design, manufacturing, logistics a nd product development, making it difficult for American consumers and businesses to find alternatives if tariffs are increased, Dudarenok said.

While frictions over soaring Chinese exports of high-profile products such as cars and batteries are likely to provide the backdrop for a presidential summit in Washington on Thursday (September 24), the boom in the seemingly non-strategic beauty sector underscores the depth of China's manufacturing prowess.

Camera: Nicoco Chan, Joyce Zhou, Editing and Production: Nicoco Chan, Writing: Nicoco Chan, Chenxi Yang/Reuters