In a rural Chinese county, the lingerie industry has boomed thanks to U.S. tariff exemptions, but potential policy changes threaten livelihoods. In Guanyun county, 290 km from Nanjing, Lei Congrui runs Midnight Charm Garment Co., a lingerie firm supplying platforms like Shein. His showroom is part of the WeMet Industrial Park, dubbed “Victoria’s Secret Town,” though it has no connection to the U.S. brand.
The “de minimis” rule, which exempts foreign packages under $800 from tariffs, has fueled Lei’s growth, with 70% of his revenues coming from U.S. exports. However, efforts by President Joe Biden to tighten these rules and Donald Trump’s tariff pledges jeopardize the industry. Nomura estimates that scrapping the exemption could lower China’s GDP growth by 0.2 percentage points, with small factories and blue-collar workers most affected.
Guanyun has invested heavily in the lingerie sector, allocating $3 billion to the industrial park, though much of it remains vacant. Lei began his business in 2006, and by leveraging the tariff exemption, his exports doubled annually. Today, 1,400 local firms employ 100,000 people in the industry. While Lei plans to explore new markets and invest in U.S. warehouses, others, like Xu Yan of Gummy Park, focus on markets beyond the U.S.
For residents, these factories provide stable incomes far better than farming. Workers like Zhang Lan earn up to 7,000 yuan monthly, while seniors like Zhou earn 3,000 yuan packaging products. For many, these jobs mean financial security and staying close to family—significant improvements over their past struggles.
