REPORT: Tariffs Impact Chinese Textile Hub

SUZHOU, China-One of China’s major textile hubs faces setbacks from the ongoing trade war with the U.S. The South China Morning Post reports that the city of Suzhou was already struggling before the spat and has seen increased difficulties.

Suzhou’s primary economic generator is manufacturing, coming in as China’s second-largest manufacturing hub for a variety of goods such as steel, iron, and electronic equipment. The city also houses numerous textile manufacturing operations. With woven fabrics now part of President Trump’s 25% tariffs the newspaper notes that the city has been directly impacted. One standout statistic the Post cites is a 28% reduction in exports in the first quarter of 2019 by more than 500 companies in the region compared to 2018.

A decrease in orders from the U.S. for raw materials like FDY150D, a super-thin fiber used in textile and apparel production, has also dropped the price of said material, depreciating yarn inventory for Suzhou companies, the paper reports. In addition to statistics, the news outlet points to the Suzhou Jinzhu Air Jet Weaving Company, a facility the produces cotton fabrics, who sent their workers home for a month-long ‘holiday.’

“Since June, Suzhou Jinzhu has not received a single order, which it blames on the US-China trade war,” the Post says.

Other facilities in the area have taken similar measures, sending employees home on unprompted holidays.

To read the full report, visit https://www.scmp.com/economy/global-economy/article/3016490/chinas-textile-capital-suzhou-was-struggling-trade-war