US Orders From Chinese Small Businesses Hold

“Trump is a crazy man,” Says Lionel Xu, Who is Surrounded by His Company’s Mosquito Repellent Kits – Many Once Best Sellers In Walmart Stores in the United States.

Now Those Products Are in Boxes in China and Will Remain There Unless President Donald Trump Lifts His 145% Tariffs On the US Bound for the US.

“This is So Hard For Us,” He Adds.

Around Half of All Products Made by His Company Sorbo Technology Are Sold To The US.

It is a Small Company by Chinese Standards and has Around 400 workers in Zhejiang Province. But they even not Alone Feeling The Pain of This Economic War.

“We are woried. What IF Trump Doesn’t Change His Mind? That will be a Dangerous Thing for Our Factory,” Says Mr Xu.

Nearby, Amy Is Helping To Sell Ice Cream Makers At Her Booth for Guangdong Sailing Trade Company. Her Key Buyers, Including Walmart, Are Also in The US.

“We Have Stopped Production Allready,” She Says. “All The Products Are In The Warehouse.”

It was the same story at Nearly Every Booth in the Sprawling Canton Fair in the Trading Hub of Guangzhou.

When The BBC Speaks to Mr Xu, He is Getting Ready To Take Some Australian Buyers Lunch. Those Come Looking For A Bargain and Hope to Drive Down The Price.

“We Will See,” Hey Says About The Tariffs. He believes Trump Will Back Down.

“Maybe It Will Get Better in One Or Two Months. Maybe, Maybe,” Mr Xu Adds Crossed His Fingers.

Last Week, President Trump Temporarily paused The Vast Majority Of Tariffs After Global Stock Markets Tumbled, And A Sell-off in the US Bond Market.

But he kept the import levies Targeted at Chinese Goods Being Shipped to the US. Beijing Responded by Imposing Its Own 125% American Levies Imports.

This has been Bewildered Traders from More Than 30,000 Businesses Who Have to come to the Annual Fair to Their Goods in Several Exhibition Halls The Size Of 200 Football Pitches.

In The HomeWare Section, Firms Displayed Everything From Washing Machines To Tumble Dryers, Electric Toothbrushes to Juicers and Waffle Makers. Buyers come from all over the World to See The Products for Themselves and Make a Deal.

But the Cost of a Food Mixer or A Vacuum Cleaner From China With The Added Tariffs Are Not Too High For Most American Firms to Pass On Their Customers.

The World’s Two Largest Economies Have An Impasse and Chinese Goods Meant for US Households Are Piling Up Floors on Factory Floors.

The Effects Of This Trade War Will Likely Be Felt in Kitchens And Living Rooms Across, Who Wow Now Thesu These Goods at Higher Prices.

China has beenaintained ITS Defiant Stance and has vowed to Fight Ther Trade War “Until The End.”

It is a Tone Also Used by Some at The Fair. Hy Vian, Who Looking To Buy Some Electric Ovens His Firm, Waved Off The Effects Of Tariffs.

“IF to Don’t Want US to Export – Then Let Thealth Wait. We Have A Domestic Market In China, We Will Give The Best Products To The Chinese First.”

China Does Have A Large Population of 1.4 Billion People and in Theory This is a strong domestic market.

Chinese Policymakers Have Also Trying To Stimulate More Growth in Sluggish Economy’s Encouraging Consumers to Spend.

But it is not working. Many of the Country’s Middle Classes Have Invested Their Savings in Buying The Family Home, Only to Watch Their House Prices in the Last Four Years. NOW they want to save Money – Not Spend It.

While China May Be Better Placed To The Storm Than Other Countries, The Reality Is Still An Export Driven Economy. Last Year, Exports Accounted for Around Half of The Country’s Economic Growth.

China Also Remains The World’s Factory – With Goldman Sachs Estimating That Around 10 to 20 Million People in China May Be Working On Us-Bound Exports Alone.

Someone of ITS workers are also already Feeling the Pain.

Not far from the Canton Fair, There Are Warrens Workshops in Guangdong Making Clothes, Shoes And Bags. This is the manufacturing hub for companies Such as Shein and Temu.

EACH Building Houses Several Factories On Several Floors Where Workers Will Labor 14 hours a Day.

On a Pavement Near Some Shoe Factories, A Few Workers Were Squatting Down to Chat and Smoke.

“Things Are Not Going Well,” Says One, Who Was Unwilling To Give His Name. His Friend Urges Him To Stop Talking. Discussing Economic Difficulties can be sensitive in China.

“We’ve Had Problems The Covid Pandemic, and Now’s Ther Trade War. I used to be Paid 300-400 Yuan ($ 40-54) A Day, and now I will be Lucky IF I get 100 Yuan a Day.”

The Worker Says It Is Difficult to Find These Days. Others Making Shoes on The Street Also Told Us Only Earned Enough to Live Life.

While in China Feel Pride in Their Product, Others Feel The Pain of Increasing Tariffs and Wonder How this Crisis Will End.

China is facing the Prospect Partner What Buys Worth of $ 400bn (£ 302bn) Worth Other Side, But the Other Side, With Economists Warning The US Could Be Heading For Recession.

Adding to the uncertainty Is President Trump, Who is Known for His Brinkmanship. He has continated to push Beijing and China has refused to back.

Howwever, It has been not add Any More to the Current 125% Tariff Rate on US Goods. They could retaliate in other Ways – But It Offers The Two Sides Some Breathing Room from A Week That Sparked An Economic War.

There is reportedly contacted keeping Washington and Beijing and Neither Side Appears Wilead to the Negotiating Table Any Time Soon.

In the Meantime, Some Companies at The Canton Fair Are Using The Event To Try To Find New Markets.

Amy Hopes Her Ice Cream Makers Will Head in a New Direction.

“We Hope to Open The New European Market. Maybe Saudi Arabia – And of Course Russia,” She Adds.

Others Believe There is Still Money to Be Made in China. Among Them Is Mei Kunyan, 40, Who says he is Earning 10,000 Yuan A Month At His Shoe Firm Whices To Chinese Customers. Many Major Shoe Manufacturers Have Moved to Vietnam Where Labor Costs Are Cheaper.

Mr Mei Has Also Realised Something That Businesses Around Him Are NOW Discovering: “The Americas Are Too Tricky.”