Tariffs, overcapacity squeeze China’s factory wages |
Chinese manufacturers, facing high U.S. tariffs and fierce domestic competition, are cutting wages, overtime, and hours to survive, creating hidden underemployment. Kitchen cabinet maker Mike Chai has halved its staff since the pandemic and now asks workers to take unpaid leave, calling it “survival mode.” Many factories turn to temporary contracts to avoid benefits, while pay rates drop for rural migrant workers. Economists warn this wage squeeze fuels deflationary pressure and weakens consumption. Exports to the U.S. have plunged, while shipments to other markets, including Australia, have grown, intensifying local competition. |
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