China's manufacturing sector struggles amid Iran war impact

Chinese manufacturing workers in Foshan, Guangdong province, are facing increasing hardship as the ongoing US-Israel war with Iran disrupts factory orders and employment opportunities.

Workers report desperation and low wages amid a shifting economic landscape.

The conflict in the Middle East has begun to affect China's manufacturing sector by putting pressure on factory orders, costs, and jobs.

This comes after China had shown resilience despite previous economic challenges, including tariffs imposed by the United States.

Workers in southern China describe their situation as bleak, with many earning just 18 to 20 yuan an hour for temporary factory jobs assembling plastic parts or mobile phones.

Many are over 40 years old and express frustration over the uncertainty surrounding their employment prospects.

China's economy was already experiencing slower growth and unemployment following the tariffs introduced last year, but it managed to maintain GDP growth of around 5%.

However, the new disruptions caused by the Middle East conflict are compounding existing economic pressures.

The war is impacting global trade routes, notably the Strait of Hormuz, a vital shipping lane, which is causing increased costs for Chinese manufacturers.

One trader noted that costs have risen by approximately 20%, affecting the supply chain for textiles and other goods.

Despite China's significant oil reserves and leadership in renewable energy and electric vehicles, the conflict's effects are being felt in the manufacturing hubs.

The fabric market in Guangzhou, near Foshan, remains busy but is also experiencing the strain of rising costs and disrupted supply chains.

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