Chinese Factories Reduce Production, Lay Off Workers Amid US Tariffs

Factories across China are experiencing significant slowdowns, with many halting production, sending workers on unpaid leave, and cutting overtime as a result of US tariffs imposed by the Trump administration. The tariffs, which now affect most Chinese goods exported to the US, have led to a sharp drop in American orders, particularly impacting sectors such as plastics, toys, and home appliances. Companies in regions like Guangdong, Zhejiang, and Fujian have either temporarily closed or dramatically reduced operations, with some workers being advised to seek new jobs due to uncertainty about future demand. Industry groups and factory managers report that the situation is especially dire for factories heavily dependent on US orders, though some are attempting to pivot towards European markets. Observers note that while the restructuring of China's manufacturing sector will be a long-term process, the immediate impact of the trade war is evident in widespread factory shutdowns and employment disruptions. The extent of these shutdowns remains unclear, but the economic pain is significant and growing.