China factories are feeling some heat as U.S., Europe demand slows
Pictured here on June 24, 2022, are workers making umbrellas in a factory in Jinjiang city, Fujian province, China.
Yuan He | Future Publishing | Getty Images
European sales for Guangdong-based coffee machine company HiBrew have tapered off after a sterling run last year when pent-up global demand drove up purchases of Chinese consumer goods.
Sales have fallen 30% to 40% so far this year, a sharp contrast to the 70% growth in business last year, according to General Manager Zeng Qiuping.
Rising living costs in the U.S. and Europe as well as importers waiting for potential U.S.-China tariff cuts contributed to the downturn, Zeng said. But he is optimistic the current lull is just a blip and overseas demand will return.
While HiBrew doesn’t sell much to the U.S., Zeng said fellow exporters tell him orders from the U.S. have also diminished.
Separately, freight costs are starting to fall now after surging to record levels during the…
