China weathered Trump's tariffs - but the Iran war is taking a toll

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The Middle East conflict is putting pressure on factory orders, costs and jobs in China's export-driven economy.

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"No-one understands what our life is like," says one man who is unwilling to be named.

"We work and work and have no life. Please help us," another adds - a rare, risky plea to a foreign journalist.

They seem desperate, struggling to earn enough to send money home, as they cope with the massive shifts in Chinese manufacturing, from cheap, mass-produced goods to automated advanced tech.

And that was even before the US-Israel war with Iran shook the global economy.

China's economy was already battling slower growth and unemployment when Donald Trump's tariffs hit last year. Still, it proved resilient, boosting exports and reporting GDP growth of around 5%. But the discontent continued to simmer. And now the Middle East conflict is starting to take a fresh toll, putting pressure on factory orders, costs and jobs.

In Foshan, in the southern industrial province of Guangdong, the workers' best opportunity is plastered in bright red lettering in front of them: a few weeks of moulding plastic, or screwing together parts of a mobile phone, for 18 to 20 yuan an hour, which amounts to just a few dollars or pounds.

"I'm going to try and find work elsewhere," says another worker from a rural province. Most are well over 40 years old, and frustrated at yet more uncertainty.

This is one of the reasons Beijing is calling for the war to end.

China's enviable oil reserves and the lead it has taken in renewables and electric cars have insulated it from the worst effects of the fuel crisis. But even as it puts on a show of steady strength, the war is choking the Strait of Hormuz, a crucial shipping route, and that is causing more pain to a sluggish Chinese economy that is heavily relying on exports.

"Costs have gone up around 20%," says one trader who didn't want to be named, as she organi

Source: BBC

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