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Wed, 22 Apr 2026

Wed, 22 Apr 2026 China weathered Trump's tariffs - but the Iran war is taking a toll

The Middle East conflict is putting pressure on factory orders, costs and jobs in China's export-driven economy.
Workers are desperate to find stable employment and earn enough to send money home, with many over 40 years old and frustrated at the uncertainty. One worker said he would try to find work elsewhere, while others pleaded for help from foreign journalists. Traders in the textile market in Guangzhou report a 20% increase in costs due to higher oil prices, which affects their ability to produce fabric and meet orders from retailers such as Zara and Shein. The war is also affecting China's electric vehicle (EV) exports, with shipments to customers in the Middle East being delayed or cancelled. However, Chinese manufacturers are still exporting a significant number of EVs, particularly to Africa and South America. Beijing is calling for an end to the conflict and is pushing its friend Iran towards negotiations. The Chinese government wants to secure a ceasefire and has been engaging in diplomatic efforts with countries such as the UAE and Saudi Arabia. Despite China's growing global influence, workers in Foshan are still struggling with stagnant wages and lack of job security. One worker showed his pass from the Canton Fair, where he had worked for 14 hours cleaning toilets for 150 yuan ($20; £14.80).