China’s clothing factories battle with US tariffsーNHK WORLD-JAPAN NEWS
US President Donald Trump has imposed additional tariffs on Chinese products one after another since he took office reaching 145% in midappril but these were cut considerably in miday as a result of US China talks however a part of the reduction lasts for only 90 days and the two sides will continue to negotiate until mid August in the southern province of Guandong where many clothing factories ries are concentrated. We follow three Chinese factory owners who are finding ways to deal with the unstable situation. The impact of the US tariffs of 145% was clear to see at an apparel export trade fair held in early May. The Panu District in southern Guangjo is home to 7,000 clothing factories. Factory owner Yao Gang employs 30 workers and receives orders from brands in China and abroad. Following the US tariff fight, he was pressured by clients to drop the manufacturing unit price. What was $140 before only pays a$110 now. It’s a big problem. The company has to make large quantities of clothes, but lacks the budget to hire more workers. Yao’s family members help with the work. Facing hard times together, he and his wife barely have time to go home, so they look after their small children while they are working. I spend my whole day running around the factory. I made it this far through sheer determination. I still see possibilities in closed manufacturing. The situation changed completely on May 12th. Yesterday, we achieved a total reset with China. After productive talks in Geneva, the US announced that it will reduce the additional tariffs from 145% to 30%. But a portion of that reduction would apply for only 90 days. Manufacturers in China were relieved by the announcement, but a production rush began so they could export as much as possible during the 90 days. Leipe Holmes inherited his factory from his father 10 years ago. He has more than 200 employees. Almost all the products they make are for the US market. The factory partially suspended production in April when the tariffs reached 145%. But after that was reduced in May, it ramped up operations to handle a surge in orders. We’ve gotten loads of orders. Clients want to receive products while the tariffs are lowered and avoid the potential risks from future changes. If Lee doesn’t hurry to satisfy the orders, it may affect relationships with his clients. Lee says since he took over from his father, he’s never experienced such stress. It’s good that the tariffs have been lowered, but it’s incredible pressure. If we can’t ship now, we might end up being affected again by changes in US policy. Amid an uncertain outlook, factory owners are being pressed to explore markets beyond the US. Jong Xiao Juan got her start as a fashion model and began operating a clothing factory 12 years ago. She had made many products for sale in the US, but is now making an effort to expand into Europe, the Middle East, and Africa. Her goal is to come up with hit products targeting each region. She hired additional designers specifically to develop new brands. [Music] Joan currently has a client she’s especially focused on winning over. Thank you. It’s a clothing sales company in Dubai whose top designer recently paid a visit to the factory. Jong hopes a business connection may broaden her own pathway to the Middle East. The tariffs showed me our vulnerability. If we don’t spend the time developing foreign markets, we’ll be left behind. I have ideas for 10 times as much business, and I believe in myself. Amid unstable international politics, China’s clothing manufacturers will continue to seek ways to ensure they survive. Discussions over tariffs between Washington and Beijing are expected to intensify in early August. Trump’s tariffs pose an incredible amount of pressure on many factory owners, but some are looking at the difficult situation as an opportunity. China’s manufacturing industry, which has heavily relied on exports to the US, now appears to be at a major turning
China’s clothing industry has been hit hard by US import tariffs. We follow three Chinese factory owners who are finding ways to deal with the unstable situation. #china #business
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