{"id":593700,"date":"2026-04-30T01:45:00","date_gmt":"2026-04-30T01:45:00","guid":{"rendered":"https:\/\/buglecall.org\/?p=593700"},"modified":"2026-04-30T01:45:00","modified_gmt":"2026-04-30T01:45:00","slug":"private-sector-struggles-in-major-chinese-industrial-base-as-export-orders-shrink-local-businessmen-3","status":"publish","type":"post","link":"https:\/\/buglecall.org\/?p=593700","title":{"rendered":"Private Sector Struggles In Major Chinese Industrial Base As Export Orders Shrink: Local Businessmen"},"content":{"rendered":"

Private Sector Struggles In Major Chinese Industrial Base As Export Orders Shrink: Local Businessmen<\/span><\/p>\n

\n

Authored by Alex Wu via The Epoch Times<\/a> (emphasis ours),<\/em><\/p>\n

Amid China\u2019s persistently sluggish economy, Zhejiang Province, a major production and industrial base in eastern China, is seeing a decline in trade orders<\/strong> as private enterprises struggle to stay afloat, according to industry professionals who spoke with The Epoch Times.<\/p>\n

<\/a><\/p>\n

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Workers load goods for export into a container at a logistics hub in Yiwu, Zhejiang Province, China, on April 29, 2025. Kevin Frayer\/Getty Images<\/em><\/figcaption><\/figure>\n

<\/p>\n

As the \u201chollowing out\u201d of the private sector economy in mainland China intensifies, profit margins for industrial enterprises in Zhejiang have been under pressure since 2024, local industry insiders say.<\/strong><\/p>\n

The coastal province bordering the megacity of Shanghai is an economic powerhouse for China. It ranked fourth nationwide in gross domestic product last year, with its capital city of Hangzhou being the primary economic driver, along with other well-known commercial cities in the province such as Ningbo and Wenzhou, according to official data.<\/p>\n

However, a large number of family-run export enterprises, which had previously served as pillars of the local county-level economies within the provinces, have had to cease operations<\/strong> in the face of shifting supply chains and shrinking orders over the past few years, according to Huang, an insider in Zhejiang\u2019s textile industry who gave only her last name out of fear of reprisal from the Chinese regime.<\/p>\n

\u201cProfits have now dwindled to below 3 percent,\u201d she told The Epoch Times. \u201cMost garment factories are either operating at a loss or have gone under.\u201d<\/p>\n

The situation in Zhejiang has changed, Huang said.<\/p>\n

\u201cIt is no longer the profitable place it once was<\/strong>,\u201c she said. \u201dFor many enterprises, the issue isn\u2019t merely low profit margins\u2014they are actually reaching their breaking point<\/strong>.<\/p>\n

\u201cPrivate enterprises in the Jiangsu\u2013Zhejiang region have long been regarded as a barometer of the economy.<\/p>\n

\u201cIf even these firms in this region can no longer hold out and begin shutting down en masse, it signals that the problems facing the entire Chinese economy have become extremely severe.\u201d<\/p>\n

Inflated Economic Data<\/h2>\n

Although Zhejiang\u2019s GDP growth rate appears relatively stable, \u201cthe reality is that fabricated data mask the grim operational realities faced by businesses on the ground,\u201d Liu Mao, a businessman in Wenzhou who used a pseudonym out of fear of reprisal, told The Epoch Times.<\/p>\n

\u201cForeign-invested enterprises in China face an operating environment constrained by hostility from authorities.<\/strong> Meanwhile, private domestic enterprises are subjected to tax audits and heavy fines. Under such layers of systematic exploitation, it is nearly impossible for any business\u2014regardless of its nature\u2014to survive.\u201d<\/p>\n

In recent years, the business environment in China has continued to deteriorate because of the Chinese regime\u2019s inconsistent policies and tightened controls, as well as geopolitical tensions and increasing trade frictions between China and the West that have led to supply chain diversification. As a result, a significant number<\/a> of foreign companies, and even some Chinese companies, have been moving their factories from China to Southeast Asian countries.<\/p>\n

According to official data released by Hangzhou Customs, the total value of goods trade imports and exports in Zhejiang Province reached 1.38 trillion yuan (about $201.83 billion) in the first quarter of 2026, a year-on-year increase of 7.1 percent, marking the fourth consecutive quarter in which both imports and exports have registered positive growth.<\/p>\n

However, Liu noted that the province\u2019s export trade figures are heavily inflated.<\/p>\n

\u201cAccording to internal data I obtained from friends within the system, this year\u2019s export volume actually declined compared to last year,\u201c he said. \u201dIt certainly did not grow by 7.1 percent.<\/strong><\/p>\n

\u201cMy friends told me that the public export data reported by various localities is rife with fraud. Some regions engage in double-reporting or filing false tax returns to swindle government subsidies, while those in higher positions turn a blind eye. This country is beyond saving.\u201d<\/p>\n

<\/a><\/p>\n

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Workers wear face masks as they polish eyeglass frames at the Azure Eyeglasses Co. in Wenzhou, China, on Feb. 28, 2020. Noel Celis\/AFP via Getty Images<\/em><\/figcaption><\/figure>\n

<\/p>\n

Layoffs and Lowered Wages<\/h2>\n

As businesses continue to struggle, workers are facing layoffs along with increasing difficulties in finding other jobs, according to local industry professionals.<\/p>\n

An Zhiqiang, who works in the electronics business in Hangzhou, told The Epoch Times that local private enterprises are all downsizing and laying off staff.<\/p>\n

\u201cLocals are unable to find work, making it even more difficult for people from other provinces,<\/strong>\u201d he said.<\/p>\n

\u201cSince the spring, many of our local factories have had to halt production due to a lack of orders, and quite a few foreign-funded enterprises have pulled out as well.<\/p>\n

\u201cFor instance, a Scandinavian company here that manufactures feed processing equipment has downsized its workforce from 80 employees to just 29, and further layoffs are expected<\/strong>.\u201d<\/p>\n

Amid the economic downturn characterized by reduced consumption and diminished purchasing power, the livestock industry\u2019s demand for feed is also declining, resulting in sluggish sales for related equipment, according to An.<\/p>\n

\u201cRight now, industries across the board are downsizing<\/strong>,\u201c he said. \u201dThe only places still hiring are essentially large foreign-funded enterprises\u2014for instance, Japanese companies in Hangzhou. But they only recruit new staff to replace those who retire; consequently, only young applicants who aren\u2019t afraid of hard work stand a chance.\u201d<\/p>\n

<\/a><\/p>\n

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A worker is shown on the floor of a steel machinery factory in Hangzhou, Zhejiang Province, China, on June 6, 2025. STR\/AFP via Getty Images<\/em><\/figcaption><\/figure>\n

<\/p>\n

Currently, temporary workers are being paid 13 yuan ($1.91) per hour, whereas the government-mandated rate is 25 yuan ($3.66) per hour, he said.<\/p>\n

\u201cAlthough in the suburban districts of Tonglu and Chun’an, hourly rates of 22 yuan [$3.22] can still be found,\u201d he said.<\/p>\n

According to the latest official standards released in February, the minimum hourly wage in Hangzhou is 25 yuan ($3.66).<\/p>\n

The current issue is not merely a shortage of jobs in Hangzhou, Liu said, \u201cbut rather that [all of] mainland China is undergoing a phase of accelerating economic downturn.\u201d<\/p>\n

Wang Yibo contributed to this report.<\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 04\/29\/2026 – 21:45<\/span><\/p>","protected":false},"excerpt":{"rendered":"

Private Sector Struggles In Major Chinese Industrial Base As Export Orders Shrink: Local Businessmen Authored by Alex Wu via The Epoch Times (emphasis ours), Amid China\u2019s persistently sluggish economy, Zhejiang Province, a major production and industrial base in eastern China, is seeing a decline in trade orders as private enterprises struggle to stay afloat, according… Continue reading Private Sector Struggles In Major Chinese Industrial Base As Export Orders Shrink: Local Businessmen<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":593682,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[20,23],"tags":[],"class_list":["post-593700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-empowerment","category-national-security","entry"],"_links":{"self":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/593700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=593700"}],"version-history":[{"count":0,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/593700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/media\/593682"}],"wp:attachment":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=593700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=593700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=593700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}