China editor
” Trump is a mad man,” says Lionel Xu, who is surrounded by his agency’s mosquito repellent products, many of which were once bestsellers in American Walmart businesses.
If President Donald Trump doesn’t lift his 145 % taxes on all Chinese items bound for the US, those items are currently stored in boxes in a Chinese inventory and will be there.
He continues,” This is so difficult for us.”
His business Sorbo Technology sells approximately half of its goods to Americans.
By Chinese requirements, it is a small business with about 400 employees in Zhejiang province. They are not the only ones who are affected by this financial war.
” We are concerned. What if Trump doesn’t make a change of heart? That will be hazardous for our factory, according to Mr. Xu.
Amy is assisting in the Guangdong Sailing Trade Company’s hall in selling ice cream makers. Walmart, one of her main customers, is likewise based in the US.
” We have already stopped generation,” she claims. ” All the products are in the storehouse,” the statement reads.
The sprawling Canton Fair in Guangzhou, the trading gateway of China, had the same tale at almost every hall.
When Mr. Xu speaks with the BBC, he is getting ready to serve some Asian customers with breakfast. They are hoping to lower the price because they are looking for one.
He refers to the taxes as” we will see.” He thinks Trump did back down.
” Maybe it will improve in one or two weeks. Mr. Xu adds with his hands crossed as possible.
Xiqing Wang / BBCAfter world stock markets fell and a sell-off in the US bond market, President Trump briefly halted the vast majority of tariffs last year.
However, he continued to levy transfer taxes on Chinese products when they were being shipped to the US. Beijing reacted by imposing its unique 125 % taxes on American goods.
More than 30 000 companies who have displayed their products at the annual fair in show rooms the size of 200 sports pitches have been perplexed by this.
From washing machines to fall dryers, electric razors to juicers and crepe makers, companies displayed everything in the homewares part. Clients from all over the world visit the stores to try them out for themselves and close deals.
However, the cost of a food blender or vacuum cleaner from China is currently very great for the majority of American businesses to pass it on to their clients.
China’s imports are accumulating on factory floors in the country’s two largest economy, creating an impasse.
Kitchens and living rooms across America will probably experience the effects of this business warfare, where consumers will now be forced to pay higher prices for these items.
China has continued to be stubborn and has pledged to fight this trade dispute “until the end.”
It’s a voice that some people use at the good also. Hy Vian, who wanted to purchase some energy furnaces for his business, resisted the effects of taxes.
” Let them delay if they don’t want us to trade.” We currently have a local market in China, and we will place orders for the best goods in China first.
Xiqing Wang / BBCChina does include a 1.4 billion people, which is theoretically a robust domestic market.
Chinese politicians have also been attempting to encourage consumers to invest in an effort to encourage further progress in a slow economy.
But it isn’t working. Many of the middle classes in the nation have spent their money on house purchases, only to see property prices decline over the past four years. They now want to keep money rather than use it.
China may be better positioned than additional nations to weather the storm, but its economy is also primarily dependent on exports. Export accounted for roughly half of the country’s economic growth next year.
China continues to be the world’s manufacturer, with Goldman Sachs estimating that between 10 and 20 million Chinese people may be focusing solely on US-bound imports.
Xiqing Wang / BBCSome of its employees are currently experiencing the suffering.
There are labyrinths of sessions in Guangdong making clothing, shoes, and bags close to the Canton Fair. Shein and Temu are the two companies ‘ production centers in this area.
Workers will work for 14 hours a day in some factories located on different floors in each tower.
A dozen workers were squatting down to chat and smoke on a road close to some foot companies.
One who was afraid to name his name says,” Things are not going well. His colleague reprimands him to cease speaking. In China, discussing financial issues can be difficult.
” We’ve had issues since the Covid crisis, and now there’s a business conflict. I used to be paid 300-400 yuan ($ 40-54 ) a day, and now I will be lucky if I get 100 yuan a day”.
Xiqing Wang / BBCThe employee claims that these days it’s challenging to find job. Other shoe manufacturers on the street even stated that they only had enough money to live a simple lifestyle.
While some people in China take pride in their goods, others are hurt by the rise in tariffs and know how the issue will stop.
China is dealing with the loss of a trading partner that annually purchases more than$ 400 billion ( £302 billion ) worth of goods, but economists are also concerned that the US could experience a recession.
President Trump, a renowned brinkman, is just one more factor in the confusion. He has continued to push Beijing, but it has refused to step down.
However, it has stated that it will not increase the country’s current 125 % tax rate on US products. They may also engage in various retaliation, but it gives the two parties some breathing room after a week-long economic war.
Washington and Beijing apparently have little in common, and neither part seems eager to approach the table for a deal any time soon.
Some businesses are attempting to find new areas at the Canton Fair in the interim.
Amy hopes that the course of her ice cream makers will change.
” We intend to introduce the new European industry. She goes on to mention Russia as well as Saudi Arabia.
Some people think there is still money to be made in China. Mei Kunyan, 40, claims to make around 10,000 rmb per month at his foot company, which sells to Chinese clients. Many of the world’s leading boot manufacturers have relocated to Vietnam, where labor is less expensive.
The Americas are very challenging, according to Mr. Mei, who has also realized something that other businesses are now discovering.