Chinese factories stop production, new markets when tariffs get in the US

Beijing – Chinese manufacturers stop in production and turn to new markets, as the influence of tariffs on the United States.

Lost orders also get into work.

“I know some factories that ordered half of their employees to go home for a few weeks and stopped most of their production,” said Cameron Johnson, a senior partner in Shanghai at the Tidalwaves Consulting Firm. He said the factories that produce toys, sports goods and store goods with inexpensive dollars are most affected.

“Although not large-scale, it happens in the key (export) nodes of Yiwu and Dongguan, and there is concern that it will grow,” Johnson said. “There is hope that tariffs will be reduced to restore orders, but in the meantime companies carry employees and single production.”

Goldman Sachs estimate that about 10 million to 20 million workers in China are involved in an American export enterprise. Official The number of workers in the cities of China Last year, it was 473.45 million.

In a number of Swift Annsibles this month, the United States added more than 100% tariffs for Chinese goods to which China has avenged mutual duties. While US President Donald Trump on Thursday claimed trade talks When Beijing was coming, the Chinese side denied that any negotiations were going on.

The impact of the recent doubling tariffs is “much greater” than in the Covid-19 pandemic, said Ash Mong, founder and CEO of Services Founded in Guangzhou, a supply chain management company. He noted that for small businesses that have only a few million dollars, a sudden increase in tariffs can be unbearable and can remove them from business.

He saidTariff of assistance“Friday’s site to help small businesses find suppliers outside China.

Woodswool, a manufacturer of sportswear based in Ningbo, near Shanghai, quickly turned to Selling clothes online in China via vibrant. After launching the sales channel about a week ago, the company said it received more than 30 orders with the gross value of more than $ 5,000 ($ 690).

This is a small step to the salvation of the lost business.

“All our orders in the United States have been canceled,” Mandarin Li Yan said, a factory manager and Woodswool brands, translated by CNBC.

Lee once more than half the production went to the US, and some power will be idle for two to three months until the company is able to create new markets, Lee said. He noted that the company sold to customers in Europe, Australia and the US for over 20 years.

Lively, a live broadcast is part of the efforts of large Chinese technology companies at the will of Beijing to help exporters redirect their goods to the domestic market.

Woodswool sells its products online via Baidu, which also includes an e -commerce platform. Lee said he had chosen a virtual version of the company live, as he allowed him to get up and work for two weeks without spending time and money for the reconstruction of the studio and hiring the team.

Baida said he had worked with at least a few hundred Chinese businesses after this month to launch internal e-commerce channels, announcing that it will provide subsidies and free artificial intelligence tools, “huiboxing” virtual people-for 1 million enterprises. Virtual people are digital versions of people who use AI to simulate sales venues and automate customer interaction. The company claimed that the profitability of the investment was higher than in the use of a person.

The JD.com e-commerce company was one of the first to announce a similar support by promising 200 billion yuan ($ 27.22 billion) to buy Chinese goods designed for export- and find ways to sell them in China. The Meituan Food Delivery Company has also announced that it will be Help exporters spread domestically the countryWithout the amount of the amount.

However, $ 27.22 billion accounts for only $ 524.66 billion of goods that China has laid out in the US last year.

“Several businesses told us that less than 125% of the tariffs, their business model does not work,” Michael Hart, president of the US Chamber of Commerce, told reporters on Friday. He also noted more competition among Chinese companies last week.

Hart said tariffs from both countries are likely to remain at a certain level, with release for certain tariffs. “That’s exactly what they support.”

Products that are branded and designed for the US suburban consumer may not work directly for the residents of Chinese apartment.

Manufacturers switched directly to Chinese social media platforms Red Note and Douyin, a local Tiktok version to ask consumers to support them, but fatigue is growing, said Ashley Dudorenok, Chozan founder, Chinese marketing advisor.