Chinese factories stop production, new eye markets with American tariffs

BEIJING – Chinese manufacturers stop production and turn into new markets as the impact of the American customs tariffs, according to companies and analysts.

Lost orders are also hitting jobs.

“I know many factories that told half of their employees to return home for a few weeks and stop most of their production,” said Cameron Johnson, a great partner at Tidalwave Solutions. He said that factories that make games, sports commodities, and low -cost commodities are expensive are the most affected at the present time.

Johnson said: “Although not yet widely, it happens in the axes (export) of Yiwu and Dongguan, and there is concern that it will grow,” Johnson said. ))

About 10 million to 20 million workers in China participate in exporting companies restricted in the United States, according to Goldman Sachs estimates. responsible The number of workers in the cities of China Last year was 473.45 million.

More than one series of fast ads this month, the United States added more than 100 % of the customs tariffs to Chinese goods, which China has averages with mutual duties. While US President Donald Trump confirmed on Thursday commercial talks With Beijing, the Chinese side denied any ongoing negotiations.

“The recent double in customs tariffs is” the largest way “from the Covid-19 gate. He pointed out that for small companies, which number several million dollars in resources, the sudden increase in definitions may be unlikely and can place them outside the work.

He said that there are many requests from clients and other importers of Chinese products that are launching new “Help the tariff“The web site on Friday to help small companies find suppliers stationed outside China.

Woodswool, a sports -based sports game manufacturer, near Shanghai, quickly turned into Selling online clothes in China via live broadcasting. After the launch of the sales channel about a week ago, the company said it had received more than 30 requests for the total value of goods that exceed 5,000 yuan ($ 690).

It is a small step towards saving lost business.

“All of our American orders have been canceled,” said Li Yan, factory manager and director of the Woodswool brand, in Mandarin, translated by CNBC.

He told me that more than half of the production went to the United States, and some of the capacity will be working for two to three months so that the company can build new markets. He pointed out that the company has sold customers in Europe, Australia and the United States for more than 20 years.

The direct broadcasting project is part of an effort by major Chinese technology companies, at the request of Beijing, to help exporters to redirect their goods to the local market.

Woodswool sells its online products through Baidu, which also includes the search engine application platform for broadcasting. He told me that he chose the option of the company’s virtual living company because it allowed it to rise and run within two weeks, without the need to spend time and money to renew the studio and employ a team.

Bido said that she worked with several hundreds of Chinese companies at least to launch local e-commerce channels after this month that it will provide free artificial intelligence subsidies and tools-Huiboxing “Huiboxing” Million work. Virtual human beings are digitally re -created versions of people who use artificial intelligence to imitate sales fields and automate interactions with clients. The company claimed that the return on investment was higher than the use of a person.

The e-commerce company JD.com was one of the first to declare a similar support, as it pledged 200 billion yuan (27.22 billion dollars) to buy Chinese goods already designated for export-and to find ways to sell them inside China. Meituan Food Delivery Company has also announced that it will work Helping exporters to distribute locallyWithout specifying an amount.

However, $ 27.22 billion is only 5 % from 524.66 billion dollars of goods that China issued to the United States last year.

“A few companies told us that less than 125 % of the customs tariff is their business model is not applicable,” Michael Hart, President of the American Chamber of Commerce in China, told reporters on Friday. He also noticed more competition between Chinese companies last week.

Hart said that the customs tariff from both countries will likely remain at a certain level, with exemptions for some definitions. “This is exactly what they support.”

Products with brands and development of the US consumer may not directly work with its suburbs with a Chinese apartment.

The manufacturers have moved directly to the Chinese social media platforms, Red Note and Douyin, the local version of Tiktok, to request consumers to support them, but fatigue grows, as Ashley Dudarenok, founder of Chozan, indicated Chinese marketing consultations.