Factories in China are slashing hours, overtime, and wages as steep U.S. tariffs and increased competition in alternative markets squeeze profits. Many employers are turning to unpaid leave and temporary contracts, leaving workers underemployed despite steady official jobless rates. Economists caution that this pay squeeze is adding deflationary pressure to sectors like textiles, furniture, and simple electronics, even as exports to other regions continue to rise.
See "China factories cut shifts and workers' pay as US tariffs bite", David Kirton, Reuters, August 12, 2025