BBC: China Withstands Trump Tariff Shock, but US-Iran War Adds New Tests
According to the BBC, while China's economy survived the Trump tariffs, the war in the Middle East is causing logistical gridlocks and rising costs that directly hit China's export-driven manufacturing, particularly the booming EV sector.
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- 📰 Published: April 23, 2026 at 12:25
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Middle East War Focus News
Central News Agency
(CNA Report, London, 22nd) Although China's economy weathered the impact of former US President Donald Trump's tariffs, the expanding war in the Middle East, with disrupted shipping lanes and rising energy costs, is heavily striking China's export-dependent industries. These factors are forcing Beijing—eager to finish its technological transition—to urgently seek an end to the war.
The British Broadcasting Corporation (BBC) reported that the atmosphere feels slightly grim in the backstreets of Foshan, Guangdong, one of China's largest manufacturing hubs. Workers smoke under trees, surrounded by storefronts covered in hiring ads for temporary factory jobs.
They seem desperate, struggling to earn money to send home. Workers are coping with a massive shift in Chinese manufacturing: from cheap mass-produced goods to automated advanced technology.
All of this was happening even before the war between the US, Israel, and Iran shook the global economy.
When hit by the Trump tariffs last year, China's economy was already dealing with slowing growth and unemployment. Despite this, the Chinese economy showed resilience, boosting exports to achieve roughly 5% GDP growth, but underlying discontent continues to brew. Now, the conflict in the Middle East is starting to deliver a new shock, pressuring factory orders, costs, and jobs.
In the industrial hub of Foshan, the best opportunities available to workers are posted in bright red letters: a few weeks of making plastic molds or assembling mobile phone parts, paying 18 to 20 RMB (about NT$83 to 92) per hour.
One worker from a rural province said, "I plan to look for work elsewhere." Most are over 40 and frustrated by yet another wave of uncertainty.
This is one reason Beijing is calling for an end to the war.
China boasts enviable oil reserves and leads in renewable energy and electric vehicles (EVs), shielding the country from the worst impacts of fuel crises. But despite projecting stability, the war is strangling the vital Strait of Hormuz, causing more pain for an already sluggish, export-reliant Chinese economy.
A short drive away, inside the massive exhibition halls of the China Import and Export Fair (Canton Fair) in Guangzhou, manufacturers are welcoming buyers from around the globe. Humanoid robots wave and sing while international visitors busy themselves taking selfies.
This is the China that Beijing's leadership wants the world to see: a nation looking to the future and building new technology, while its rival, the United States, is bogged down in Middle Eastern wars.
At the exhibition, people line up to try on AI glasses that claim to translate foreign languages and robotic legs that assist in mountain climbing. Of course, there are many everyday gadgets too, from vacuums that erase stains in seconds to espresso machines and hair curlers.
Traders note that one thing these products have in common is rising prices, partly because they are made of plastics, which require petroleum to manufacture.
Yet buyers keep coming, as businesses strive to serve the market. The war has also highlighted China's advantage in a key sector amidst fuel shortages: electric vehicles.
According to the China Passenger Car Association, in March alone, Chinese manufacturers exported 350,000 EVs, a 30% increase from February and a staggering 140% jump from March of last year.
EVs are also one of China's biggest exports to the Middle East, but trader Ms. Liu finds that delivering goods to clients has become extremely difficult.
"Last year, 90% of our cars were sold to the Middle East, but this year, due to the war, we have almost stopped doing business with them... Some cars are still waiting at Chinese ports," she said.
Yu Jie of the London-based think tank Chatham House commented that while the war will reinforce Beijing's ongoing push for self-reliance, China is not a true winner in this situation.
She pointed out, "Ironically, a declining US is what China had hoped to see. But is this the US that China wants? China might prefer a more predictable US that is perhaps easier for Beijing to manage."
However, Yu added that a balance must still be struck, as Beijing "does not want to anger Trump." She believes the anticipated Xi-Trump meeting scheduled for May will temper China's response to the war.
"Beijing hopes to do everything possible to ensure this meeting goes smoothly." (Translated by Li Pei-shan)
Central News Agency
(CNA Report, London, 22nd) Although China's economy weathered the impact of former US President Donald Trump's tariffs, the expanding war in the Middle East, with disrupted shipping lanes and rising energy costs, is heavily striking China's export-dependent industries. These factors are forcing Beijing—eager to finish its technological transition—to urgently seek an end to the war.
The British Broadcasting Corporation (BBC) reported that the atmosphere feels slightly grim in the backstreets of Foshan, Guangdong, one of China's largest manufacturing hubs. Workers smoke under trees, surrounded by storefronts covered in hiring ads for temporary factory jobs.
They seem desperate, struggling to earn money to send home. Workers are coping with a massive shift in Chinese manufacturing: from cheap mass-produced goods to automated advanced technology.
All of this was happening even before the war between the US, Israel, and Iran shook the global economy.
When hit by the Trump tariffs last year, China's economy was already dealing with slowing growth and unemployment. Despite this, the Chinese economy showed resilience, boosting exports to achieve roughly 5% GDP growth, but underlying discontent continues to brew. Now, the conflict in the Middle East is starting to deliver a new shock, pressuring factory orders, costs, and jobs.
In the industrial hub of Foshan, the best opportunities available to workers are posted in bright red letters: a few weeks of making plastic molds or assembling mobile phone parts, paying 18 to 20 RMB (about NT$83 to 92) per hour.
One worker from a rural province said, "I plan to look for work elsewhere." Most are over 40 and frustrated by yet another wave of uncertainty.
This is one reason Beijing is calling for an end to the war.
China boasts enviable oil reserves and leads in renewable energy and electric vehicles (EVs), shielding the country from the worst impacts of fuel crises. But despite projecting stability, the war is strangling the vital Strait of Hormuz, causing more pain for an already sluggish, export-reliant Chinese economy.
A short drive away, inside the massive exhibition halls of the China Import and Export Fair (Canton Fair) in Guangzhou, manufacturers are welcoming buyers from around the globe. Humanoid robots wave and sing while international visitors busy themselves taking selfies.
This is the China that Beijing's leadership wants the world to see: a nation looking to the future and building new technology, while its rival, the United States, is bogged down in Middle Eastern wars.
At the exhibition, people line up to try on AI glasses that claim to translate foreign languages and robotic legs that assist in mountain climbing. Of course, there are many everyday gadgets too, from vacuums that erase stains in seconds to espresso machines and hair curlers.
Traders note that one thing these products have in common is rising prices, partly because they are made of plastics, which require petroleum to manufacture.
Yet buyers keep coming, as businesses strive to serve the market. The war has also highlighted China's advantage in a key sector amidst fuel shortages: electric vehicles.
According to the China Passenger Car Association, in March alone, Chinese manufacturers exported 350,000 EVs, a 30% increase from February and a staggering 140% jump from March of last year.
EVs are also one of China's biggest exports to the Middle East, but trader Ms. Liu finds that delivering goods to clients has become extremely difficult.
"Last year, 90% of our cars were sold to the Middle East, but this year, due to the war, we have almost stopped doing business with them... Some cars are still waiting at Chinese ports," she said.
Yu Jie of the London-based think tank Chatham House commented that while the war will reinforce Beijing's ongoing push for self-reliance, China is not a true winner in this situation.
She pointed out, "Ironically, a declining US is what China had hoped to see. But is this the US that China wants? China might prefer a more predictable US that is perhaps easier for Beijing to manage."
However, Yu added that a balance must still be struck, as Beijing "does not want to anger Trump." She believes the anticipated Xi-Trump meeting scheduled for May will temper China's response to the war.
"Beijing hopes to do everything possible to ensure this meeting goes smoothly." (Translated by Li Pei-shan)