Liu Miao has sold clothes on Amazon to wholesale buyers in the United States for the past five years. That trade has suddenly stopped.
Mr. Liu owns a small factory in Guangzhou, the long center of China’s most competitive garment industry. He and other factories directors, already working on tight profits margin, said last week that the combination of President Trump’s new tax on tariffs and cheap imports was deeper in their business. The cost of the supply chain is even higher.
The tariffs made it impossible for Mr Liur to continue to sell on Amazon, where he had earlier made about 1 dollars for each garment but now only 50 cents. And he felt that he could not spend his employees pay, Mr Liu said the workers crossed his motorbike in the labor market, which he parked on the pavement with a dress sample on the handlebar.
“You can’t sell anything in the United States right now,” Mr Liu said. “The tariff is too high.”
Platforms like Amazon, Sheen and Temu have brought China’s huge production chain to the doorsteps of the world. These online marketplaces have made it possible for thousands of Guangzhou small factories to reach buyers in the United States. And since the packages of less than $ 800 can enter tax -free in the United States, the factories and instead, the platforms were able to take very low priced charges.
Exports have become a major driver of China’s economic growth over the past few years. E-commerce business has been especially good. In a Guangzhou neighborhood, foreign luxury car-marsidies-banjas, BMW and Cadilacks were parked outside the factory that workers pay about $ 60 a day to churn the clothing sold in applications such as Shane and Amazon.
However, since trade tensions now separate the world’s two largest economies, many businesses in Guangzhou are facing a tipping point.
The tariffs compound multiple challenges in the face of clothing manufacturers. It is becoming more difficult to gain because the Chinese government has fought to fight to spend more than the country’s property market. Without increasing the values of the house, many Chinese people are preventing their expenses.
The business has hit the business for Jang Chen, who used six clothing shops in Madhya Pradesh Hubi. But when the Covid -10 pandemic and the fare did not return after the high fare, he decided to close them.
“Business has not returned in 2021, and it has not yet returned in 2021. When it was still in 2022, it seemed that it never returned,” Mr Jang said. Now he provides about $ 100 per day by providing newly sewn clothing to the sheen collection points near the airport.
In Guangzhou, factories automatically create electric vehicles or production campuses semiconductor that does not create the key to China’s year -long drive to protect geological elasticity through advanced technology. Nevertheless, China’s garment factories handed over millions of workers to livelihood.
In the interview, the owners and directors of nine factories in Guangzhou said they were considering the transfer of their activities, in some provinces like Hubi, 600 miles away, where they could pay low wages to workers. Some owners have said that they can probably move to countries like Vietnam, where many Chinese factories have already set up new tariffs on China’s exports already set.
Many have reported the declining order. Others said they had suspended some production lines. All described neighboring businesses close their doors in the past few months.
On Friday, Liu Bin built a wide garment factory with the US policy to finish duty -free import from China on Friday, where the pile of shane packages was pressed against Windows.
Mr. Liur factory was wearing a beach party or date on top of the garment and top and sheen usually bought about 100,000 pieces from him in a month. However, in April, after the company placed about half of the order, he began to transfer its production line to the neighboring province Jiangsi. He can no longer rent in Guangzhou.
Mr. Liu said that Shane was encouraging to help spent on the ongoing operations in Vietnam, and he considered it, “But then Vietnam’s tariffs have become even higher.”
He said he also tried to look for buyers in Tikatok and Temu, but every platform was ordered. “They are all reading, and we are just waiting and watching,” Mr Liu said.
Shein did not respond to any request for the comment. Temu said Friday that they had stopped supplying goods directly to US buyers from China.
The Chinese government is encouraging domestic e-trade platforms to help small businesses sell their home market. However, with Chinese customers being careful about the expenses, it will be difficult to sell domestically to export factories.
Han Joxu, who sells fancy socks in Shein and Temu, said he suspected that the US government would suddenly be able to start collecting tariffs on low -cost packages, which was coming to the United States at the rate of four million a day.
“I just don’t think this is realistic,” said Mrs. Han after closing her booth for the night at Guangzur’s annual export trade show Canton Fair.
Flophy socks for the pajamas party are some of its popular products.
This is exactly what the Americans need to buy from the Chinese business, Mrs. Han said. “They’re going to buy all of this anymore?” He asked.
Sei Contributed research.
Leave a Reply