It's a sombre gathering in the backstreets of one of China's biggest manufacturing hubs, where workers are smoking under a tree in front of storefronts advertising temporary factory jobs. 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.
In Guangzhou, the world's largest fabric market, sellers are feeling the pinch as oil prices soar, affecting production costs. Costs have gone up around 20%, shares a trader, and many are worried about reducing orders as supply chains collapse under rising costs. A year ago, amidst the trade war, defiance reigned in Guangzhou; this time, resignation seems to prevail.
Yet, amid these challenges, manufacturers still find opportunities. The Canton Fair showcases humanoid robots and cutting-edge tech, projecting a confident image of China's advancing markets, particularly in the electric vehicle sector. China exported 350,000 EVs in March 2026, a significant increase from previous months.
The war in the Middle East has complicated trade with key partners, pushing Chinese traders to explore new markets in Africa and South America while navigating existing contracts in a tightening global landscape. Analysts suggest mitigating the war's impact may involve delicate diplomatic maneuvers from Beijing as it seeks both to stabilize the situation in the Middle East and maintain its economic ambitions.
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.
In Guangzhou, the world's largest fabric market, sellers are feeling the pinch as oil prices soar, affecting production costs. Costs have gone up around 20%, shares a trader, and many are worried about reducing orders as supply chains collapse under rising costs. A year ago, amidst the trade war, defiance reigned in Guangzhou; this time, resignation seems to prevail.
Yet, amid these challenges, manufacturers still find opportunities. The Canton Fair showcases humanoid robots and cutting-edge tech, projecting a confident image of China's advancing markets, particularly in the electric vehicle sector. China exported 350,000 EVs in March 2026, a significant increase from previous months.
The war in the Middle East has complicated trade with key partners, pushing Chinese traders to explore new markets in Africa and South America while navigating existing contracts in a tightening global landscape. Analysts suggest mitigating the war's impact may involve delicate diplomatic maneuvers from Beijing as it seeks both to stabilize the situation in the Middle East and maintain its economic ambitions.
