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Private Sector Struggles In Major Chinese Industrial Base As Export Orders Shrink: Local Businessmen

Zero Rss
3 months 2 weeks ago
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’s 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 to industry professionals who spoke with The Epoch Times.

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

As the “hollowing out” 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.

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.

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 in the face of shifting supply chains and shrinking orders over the past few years, according to Huang, an insider in Zhejiang’s textile industry who gave only her last name out of fear of reprisal from the Chinese regime.

“Profits have now dwindled to below 3 percent,” she told The Epoch Times. “Most garment factories are either operating at a loss or have gone under.”

The situation in Zhejiang has changed, Huang said.

“It is no longer the profitable place it once was,“ she said. ”For many enterprises, the issue isn’t merely low profit margins—they are actually reaching their breaking point.

“Private enterprises in the Jiangsu–Zhejiang region have long been regarded as a barometer of the economy.

“If 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.”

Inflated Economic Data

Although Zhejiang’s GDP growth rate appears relatively stable, “the reality is that fabricated data mask the grim operational realities faced by businesses on the ground,” Liu Mao, a businessman in Wenzhou who used a pseudonym out of fear of reprisal, told The Epoch Times.

“Foreign-invested enterprises in China face an operating environment constrained by hostility from authorities. 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—regardless of its nature—to survive.”

In recent years, the business environment in China has continued to deteriorate because of the Chinese regime’s 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 of foreign companies, and even some Chinese companies, have been moving their factories from China to Southeast Asian countries.

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.

However, Liu noted that the province’s export trade figures are heavily inflated.

“According to internal data I obtained from friends within the system, this year’s export volume actually declined compared to last year,“ he said. ”It certainly did not grow by 7.1 percent.

“My 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.”

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 Layoffs and Lowered Wages

As businesses continue to struggle, workers are facing layoffs along with increasing difficulties in finding other jobs, according to local industry professionals.

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.

“Locals are unable to find work, making it even more difficult for people from other provinces,” he said.

“Since 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.

“For 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.”

Amid the economic downturn characterized by reduced consumption and diminished purchasing power, the livestock industry’s demand for feed is also declining, resulting in sluggish sales for related equipment, according to An.

“Right now, industries across the board are downsizing,“ he said. ”The only places still hiring are essentially large foreign-funded enterprises—for instance, Japanese companies in Hangzhou. But they only recruit new staff to replace those who retire; consequently, only young applicants who aren’t afraid of hard work stand a chance.”

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

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.

“Although in the suburban districts of Tonglu and Chun'an, hourly rates of 22 yuan [$3.22] can still be found,” he said.

According to the latest official standards released in February, the minimum hourly wage in Hangzhou is 25 yuan ($3.66).

The current issue is not merely a shortage of jobs in Hangzhou, Liu said, “but rather that [all of] mainland China is undergoing a phase of accelerating economic downturn.”

Wang Yibo contributed to this report.

Tyler Durden Wed, 04/29/2026 - 21:45
Tyler Durden

Governor Powell

Zero Rss
3 months 2 weeks ago
Governor Powell

By Philip Marey, senior US strategist at Rabobank

Summary

  • As widely expected, the FOMC remained on hold. Governor Miran dissented again because he wanted a rate cut.
  • However, there were also three dissenters (Hammack, Kashkari and Logan) who wanted to remove the bias toward cutting from the statement.
  • On balance, Powell said that the center of the Committee was moving toward a more neutral place in thinking about cuts versus hikes.
  • Powell announced that this was his last press conference as Chair, but he would stay on as a Governor until he thinks it’s appropriate to leave, because of the legal attacks on the Fed.
  • Our baseline forecast is still two rate cuts this year, one in September and one in December. Once Warsh becomes the new Chair, he will try to convince the Committee to make more than the single cut in their most recent projections. However, given the developments in the Middle East, we think that in the coming months we are more likely to drop a rate cut from our forecast than add one.

Introduction

As widely expected, the FOMC decided to keep the target range for the federal funds rate unchanged at 3.50-3.75% this month. Governor Miran repeated his dissent, preferring a ¼ percentage point rate cut at this meeting.

However, there were also three dissents (by Hammack, Kashkari and Logan) because they “did not support inclusion of an easing bias in the statement at this time.” This easing bias is currently expressed in the statement “In considering the extent and timing of additional adjustments to the target range for the federal funds rate…”. Since the last three adjustments were rate cuts, this sentence would suggest that the FOMC is still biased toward cutting.

In its assessment of the economy, the statement replaced “The implications of the developments in the Middle East for the U.S. economy are uncertain” by “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook”, not a major change content-wise. However, inflation is now explicitly linked to global energy prices and described as elevated rather than somewhat elevated. “Inflation is elevated, in part reflecting the recent increase in global energy prices” instead of “Inflation remains somewhat elevated” This is a clear nod to the rise in CPI inflation to 3.3% in March from 2.4% in February.

Press conference

In his prepared speech, Powell reiterated the economic assessment in the FOMC statement, including that economic activity has been expanding at a solid pace. However, after announcing that this was his last press conference as Chair, he said he would stay on as a Governor. He was encouraged by the recent developments, meaning the suspension of the criminal inquiry against him – which in a Senate Banking Committee vote earlier today was sufficient for Senator Tillis to support advancing Warsh’s nomination to the Senate floor – but he was clearly not entirely persuaded yet. Nevertheless, he promised to maintain a low profile as a Governor.

The two main topics during the Q&A were Powell’s decision to stay on as Governor and the dissents on the easing bias.

When asked why he wanted to stay on as a Governor, Powell said it was because of the legal attacks on the Fed. He added this had nothing to do with the verbal attacks. He said he will leave when he thinks it’s appropriate to do so. Powell said he was staying because of the actions that have been taken (by the administration), and he actually had planned to retire. But first he wants to see things calming down. Comparing the Fed’s independence now to when he started, he said “I think it’s at risk because of legal assaults.” When asked what he exactly needed from the DOJ, he said “for the investigation to be well and truly over with finality and transparency.” Powell did not answer the question what message he was sending to the President by staying on and said he’ll stand by what he said earlier. In response to the question whether he was going to act as a Shadow Chair, he said that was something he would never do. He intends to be a constructive (FOMC) participant out of respect for the office of the Chair.

Regarding the easing bias, Powell said that the majority in the Committee – including himself – thought there was no rush to change this language. However, Powell said that the center (of the Committee) was moving toward a more neutral place in thinking about cuts versus hikes. He also said there were non-voters who favored changing the easing bias. He stressed that monetary policy was in a good place and if necessary the FOMC could hike or cut, but nobody was calling for a hike right now. In response to a question whether he was handing over a divided Fed to Warsh, Powell said that this was an unusually difficult situation with 4 supply shocks in 5-6 years, referring to the pandemic, Ukraine, tariffs and Iran. So it’s only natural that you have a range of views.

Conclusion

Our baseline forecast is still two rate cuts this year, one in September and one in December. Once Warsh becomes the new Chair, he will try to convince the Committee to make more than the single cut in their most recent projections. However, given the developments in the Middle East, we think that in the coming months we are more likely to drop a rate cut from our forecast than add one.

Finally, the attempts of the Trump administration to influence the Fed through legal attacks seems to have backfired, because Powell would have left on his own volition. Instead, he now intends to stay on until the legal attacks have ceased. This means that President Trump will have to delay his plan to nominate a Governor to replace Powell, which would give the Trump-loyalists a majority in the Board of Governors.

 

Tyler Durden Wed, 04/29/2026 - 21:32
Tyler Durden

Canadian Education Minister Says Parents Have No Rights Over Their Children

Zero Rss
3 months 2 weeks ago
Canadian Education Minister Says Parents Have No Rights Over Their Children

Canada is losing its collective mind.  During a recent debate in the Nova Scotia House of Assembly, Education Minister Brendan Maguire (Progressive Conservative MLA for Halifax Atlantic) responded angrily to concerns about school policies on gender transitioning (without parental notification in many cases) and provincial funding for gender-related medical interventions for minors. 

His argument?  Parental rights are not a factor and, essentially, do not exist in the eyes of the Canadian government.

The debate was sparked by concerns raised by another MLA about provincial funding for gender-reassignment surgeries for minors, school policies on social transitioning without parental notification, and reporting by groups like the Citizens’ Alliance of Nova Scotia (CANS).  Since 2014, Canada has instituted an ever expanding far-left initiative to encourage gender ideology in public schools and prevent parents from knowing about or interfering with this indoctrination.  

Parents "absolutely don't" deserve to have rights over their children, Nova Scotia Education Minister Brandan Maguire says, as he voices support for secret gender transitions at schools and taxpayer-funded gender reassignment surgeries. pic.twitter.com/qs5yxjqCyJ

— Rebel News (@RebelNewsOnline) April 27, 2026

“I’ll be damned if I’m going to stand here and listen to someone say that the parents deserve rights over a child. No, they don’t. They absolutely don’t..."

The assertion is a common one among woke political adherents who believe that children have the ability to "consent" to life changing psychological and chemical transitioning as well as sexualized LGBT propaganda programs.  These are, of course, the same kinds of people who ran rampant in the US during the Biden Administration, promoting gender reassignment for minors and exposing elementary school kids to drag queens. 

Maguire goes off the rails, asserting that because his parents abandoned him at a young age, this is a rationale for why parents in general do not deserve the right to dictate the decisions of their vulnerable kids.  But his logic is incredibly flawed.  The mistakes of deadbeat parents do not negate the overall need for good parents to protect their children from malicious indoctrination. 

Child consent concepts are so central to the woke left's ideology because they normalize state control of children and remove the greatest obstacle to progressive control:  The nuclear family. Leftists often appeal to "empathy" and "human rights", but what they are really doing is promoting moral relativism and destructive degeneracy in the name of "civil liberties".  At bottom it should be common sense - Children are not mentally mature enough to consent.    

Nova Scotia has used the "Guidelines for Supporting Transgender and Gender Non-Conforming Students" as policy since 2014, and like most Canadian provinces, has resisted any efforts by parents or conservatives to change the rules. 

For grades 7–12, if a student "has the capacity to consent" for using preferred pronouns and gender identity, parental consent is not required. Schools must get the student’s permission before disclosing their transgender/gender-nonconforming identity to their parents. 

Canadian authorities claim this prioritizes student self-identification and confidentiality "to protect the child" from potential harm at home. A planned update was abandoned in late 2025, with the province instead incorporating related expectations into a broader school code of conduct.  Citizens do not get a vote on these policies, they are implemented unilaterally by the education bureaucracy.  

Nova Scotia’s policies against parental rights also extend to gender-affirming care, including puberty blockers and cross-sex hormones for minors. These are publicly funded treatments with no hard age minimums. Eligibility starts after the onset of puberty (typically around ages 8–14).  Parents do not have to be told that these treatments are taking place, and schools can hide the information.   

Canada is what happens when leftists are allowed free rein to do as they please.  The kinds of horrific social and political revisions that take place can disrupt or destroy a nation for generations to come.  In such an environment, something as fundamental as parental rights can be flipped on its head and turned into a crime.  

Tyler Durden Wed, 04/29/2026 - 21:20
Tyler Durden

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