Manufacturers in China try to survive trade war
Manufacturers are giving discounts, tapping tax breaks, trimming workforces and, occasionally, shifting production overseas to skirt tariffs in China.
CHINESE ECONOMY IS STRUGGLING
Tit-for-tat tariffs from the China-United States trade war have been costly for many. Adding to the strain on Chinese manufacturers have been European Union duties on Chinese products ranging from electric bikes to solar panels.
March brought some encouraging news for manufacturers. Industrial output rose at its fastest rate since mid-2014 and exports rebounded more than expected, while first-quarter growth was better than expected.
Still, some manufacturers who depend on US sales are struggling. At the Canton Fair in southern China this past week, they put on a brave face, but feared they will need to take more measures to survive if Beijing and Washington fail to seal a trade deal.