Chinese Manufacturers Adapt Amid Ongoing Trade Tensions with the U.S.

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Asia

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Image Source: Laura Bicker

In Foshan, southern China, a vast empty space on the factory floor serves as a stark reminder of the impact of recent trade tensions between the United States and China. Derek Wang, a manufacturer of high-end air fryers, has seen his production come to a halt following the imposition of Donald Trump's "Liberation Day" tariffs, which reached as high as 145% on Chinese goods entering the U.S. His American clients, impressed by his innovative air fryer models that can be controlled via smartphones, requested a pause in production as the tariffs took effect.

"I tried to keep smiling through my anxiety for the sake of my 40 workers," Wang told the BBC. However, with a recent agreement to ease trade tensions, he reported renewed interest from U.S. buyers. Despite the ongoing tariffs 30% on Chinese goods entering the U.S. and a 10% levy on American goods entering China this unexpected deal has provided some relief for manufacturers.

Wang, who invested $500,000 to establish his company, expressed the emotional toll of the tariffs, likening the situation to a divorce between two significant global powers. Yet, he remains optimistic, believing that the trade war has accelerated his plans to diversify his business beyond the U.S. market. This sentiment is echoed by many Chinese businesses, which are increasingly looking to expand their operations in regions such as Africa, South America, and Southeast Asia to reduce reliance on the American market.

The Shunde district, known as the "capital of home appliances," reflects the struggles of the manufacturing sector. Many factories have ceased hiring, particularly those linked to the U.S., and some have even shut down parts of their production lines. Workers, facing rising unemployment, have resorted to sleeping in parks to save money, highlighting the human cost of the trade conflict.

While President Trump has claimed that the trade war is hurting China, the reality on the ground presents a more complex picture. China continues to lead in the production of electric vehicles and solar panels and is making strides in artificial intelligence technology. Nevertheless, the economic strain is palpable, particularly among frontline workers and small business owners.

He Ke, a furniture manufacturer, has called workers back to his factory as orders have resumed following the recent ceasefire. His business, Gongyuan Furniture, had ground to a halt due to the tariffs, but he remains hopeful for a resolution between the two economic giants. "I am just a small businessman. But I do understand that the game between these two countries is temporary," he said, expressing optimism that dialogue will prevail.

As the U.S. and China enter a 90-day negotiation period, manufacturers on both sides are cautiously optimistic, hoping for a lasting agreement that will stabilize trade relations and allow them to thrive in an increasingly interconnected global economy.