China weathered Trump's tariffs - but the Iran war is taking a toll
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- China reported GDP growth of around 5% despite Trump's tariffs, showing resilience before the Iran conflict hit.
- Hormuz Strait closure has pushed oil‑related costs for Chinese fabric makers up by roughly 20%, squeezing margins and piling up inventory.
- Foshan workers earn 18‑20 yuan per hour, prompting many to seek jobs elsewhere as orders dwindle.
- Beijing has publicly urged an end to the Iran war to protect its export‑dependent economy.
Why it matters: Chinese fabric manufacturers lose profit margins as oil‑related costs jump 20%, squeezing margins and prompting layoffs; low‑wage workers face reduced hours, pushing them to seek work elsewhere.
