12-August-2025
Economy News
 
Analysis-China Factories Cut Shifts and Workers' Pay as US Tariffs Bite
12-Aug-2025

Mike Chai aims to cut wage costs at his kitchen cabinet factory by about 30% to remain competitive against other Chinese firms, which have stopped selling to the U.S. due to steep tariffs and are now coming after his long-time customers in Australia. Chai had already halved his workforce to 100 people since the pandemic and says he has no more room to trim. Instead, he is shortening shifts and asking workers to take unpaid leave - an increasingly common practice that has become a hidden deflationary force in the world's second-largest economy.

News Source:- https://money.usnews.com/investing/news/articles/2025-08-12/analysis-china-factories-cut-shifts-and-workers-pay-as-us-tariffs-bite