Despite Fears of Lost Orders and Unpaid Wages... Chinese Companies Say "Companies and the Nation Share a Common Destiny"

"The Biggest Crisis for Chinese Trading Company Factories Is Production Suspension"
CCTV Visits Ten Trading Company Factories and Interviews Representatives and Employees

As the US-China tariff war, initiated by President Donald Trump, has continued for about a month, China Central Television (CCTV) has reported the voices of representatives and employees from Chinese trading companies.

On May 7, CCTV covered the aftermath of the US-China tariff war by visiting ten factories of trading companies in Guangdong Province, where they interviewed company representatives and employees.

An employee is producing export pajamas at a garment factory in Jiangsu Province, eastern China. Photo by AFP

According to CCTV, the biggest crisis currently facing Chinese trading companies is the suspension of factory production. Wang Jian, CEO of Foshan Kunyan Technology, stated, "We have already invested 4 to 5 million yuan (approximately 771.36 million to 964.2 million won) in research and development, but after tariffs were raised by more than 30%, our American clients have already stopped placing orders."

Another trading company representative said, "One of our four production lines has already been shut down," adding, "Since orders from the United States have already stopped, we have to work hard to secure more orders from other markets."

An employee of an e-commerce platform said, "Every day, I calculate how long we can continue to pay salaries with the current funds of the factory," expressing concern by adding, "If workers stop working, we will incur additional costs for recruitment, so the worries are overwhelming."

Although the situation for these companies is not favorable, representatives and employees of Chinese trading companies unanimously stated that they must actively respond to the tariff war. An employee of a foreign trading company emphasized, "Chinese companies must respond to the United States," adding, "If we compromise, it could lead to even more serious consequences." He continued, "It is unavoidable. Companies and the nation share a common destiny."

Wang Zhen, chairman of the Chashan Toy and Infant Products Association, commented on the tariff war, saying, "This is not an issue that can be resolved in two to three years," and stressed, "Everyone must build their own brands and find ways to solve the problem." Chuan Guoxia, CEO of Zhongwang Toy Co., Ltd., also expressed confidence, saying, "China has developed into such a strong nation, so there is no reason why its companies cannot keep up."

A cargo ship carrying containers and raw materials near the Shanghai container terminal in China. Photo by EPA Yonhap News

Meanwhile, as the US-China trade war continues, it has been reported that the United States and China will meet in Switzerland this week to discuss bilateral trade and economic issues. This will be the first official dialogue on the matter since the relationship between the two countries rapidly deteriorated following the US's reciprocal tariff measures. Last month, the Trump administration imposed an additional 145% tariff hike on Chinese imports. In response, China retaliated by imposing up to 125% counter-tariffs on US imports.