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China weathered Trump's tariffs - but the Iran war is taking a toll
A report from Foshan and Guangzhou shows Chinese workers facing uncertainty as tariffs and a Middle East war add pressure to a still-export-driven economy. The piece notes resilience in manufacturing and EV exports, while outlining rising costs, stalled orders, and Beijing's diplomatic diplomacy ahead of a May summit with the United States.
Why It Matters
The Iran war's impact on energy markets and trade tests China’s export model and strategic diplomacy, signaling how Beijing navigates global instability while pursuing self-reliance and high-tech exports.
Timeline
7 Events
April 22, 2026: Foshan workers face stagnant wages amid uncertainty
April 22, 2026
In Foshan, a worker described earning 150 yuan for a 14-hour day, illustrating how workers are being squeezed as costs rise and orders thin.
April 22, 2026: Beijing seeks to manage May summit with the United States
April 22, 2026
Analysts say Beijing wants to avoid irritating President Trump and hopes the May 2026 summit will temper China’s response to the war.
April 22, 2026: Beijing calls for ceasefire and diplomacy
April 22, 2026
Beijing called for a ceasefire and urged Iran toward negotiations, while Xi Jinping held meetings and calls with the crown princes of the UAE and Saudi Arabia to push regional diplomacy.
April 22, 2026: War in the Middle East raises costs and slows orders
April 22, 2026
The Iran-related conflict has pushed up costs for goods produced with oil and petrochemicals by about 20% for some traders. Higher oil prices are contributing to fewer orders and delays in shipments, affecting factories and textile hubs in Guangdong.
March 2026: Surge in Chinese EV exports
March 2026
China exported 350,000 electric vehicles in March 2026, a 30% rise from February and a 140% rise from March 2025, according to data from the Chinese Passenger Car Association.
April 2025: Guangzhou defiance during the trade war
April 2025
A year ago, defiance on the streets of Guangzhou reflected public sentiment during the trade war as workers faced uncertainty and mounting pressure.
April 2025: Trump tariffs hit China amid trade war
April 2025
The article notes that tariffs hit last year, with the United States and China locked in a trade war. China’s economy was already slowing and facing unemployment, yet exports rose and GDP was reported at around 5%.