Double-whammy of trade war and higher costs threatens China’s SMEs

© Weiming Lin | Dreamstime.com

US tariffs are threatening “tens of thousands” of Chinese SMEs, according to the South China Morning Post. As the trade war drudges on – more tariffs have been threatened by the American government – export-oriented businesses in the people’s republic are facing the pinch as costs for labour, energy and rents climb. It now seems Beijing has woken up to the very real potential that millions of jobs could be at risk if it fails to act. In Guangdong alone, exports account for some 50% of employment. And it seems the heat the country is coming under is forcing many companies to consider migrating their business from China.