Chinese producers and wholesalers have already started to feel painfully the effects of astronomical duties imposed on your goods by Donald Trump. The wave of vacations and layoffs flows through the economical development-driven coastal provinces, and unsold goods lie in storage. Marked clothes and shoes are sold out for a fewer dollars, reports Radio Free Asia.
The mill owners in the 3 east provinces – Zhejiang, Jiangsu and Guangdong are forced to reduce the number of employees, reduce working hours, and even send workers on forced leave due to the almost complete halt of exports to the US resulting in up to 245-percent duties imposed by Donald Trump. Although specified a advanced rate applies only to electrical cars and syringes, in many industries they scope 145%, which makes production completely unprofitable.
The warehouses are bursting with goods. Crocsy “for a fewer cents”
Chinese social media are full of recordings from factories and warehouses where you can see abandoned workplaces and ceiling piles of unsold goods. Producers are trying to get free of them on local social platforms offering unparalleled discounts – brand $100 clothes on the another side of the Pacific are now available for a fewer dollars, reported by Radio Free Asia (RFA).
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Quoted by RFA, the owner of a warehouse in Jiaxing, Zhejiang Province, where exports account for 70% of GDP, gives an example of Crocs flaps worth US$30 to $70 presently being sold for "a fewer cents" on his private account on 1 of the e-commerce platforms. The Colorado company estimates Trump's chaotic policy will cost it $11 million just this year.
Three pillars of Chinese development. "There is nothing left"
– All points to the fact that there is nothing left of the 3 pillars of the Chinese economical growth model: consumption, investment and exports. People have no money to buy, local governments are besides indebted to invest, and advanced tariffs are killing trade," said RFA an anonymous prof. from Canton who, in fear of his safety, does not want to uncover his name.
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Also promoted by Xi Jinping for respective years, the alleged "double circulation" strategy, i.e. the primacy of interior production, but without giving up abroad cooperation, seems insufficient to meet fresh challenges from the US.
== sync, corrected by elderman == @elder_man
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