Businessmen fled Dongguan, the "world factory" and it collapsed overnight

China Unfolded
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103 Video Views·Apr 24, 2025
Businessmen fled Dongguan, the "world factory" and it collapsed overnight
Businessmen fled Dongguan, the world factory, and it collapsed overnight.
Dongguan is no longer the world's factory as it used to be.
Many large factories have moved away. The electronics and shoe factories that once
employed tens of thousands of people have all moved to Southeast Asia.
So it is obvious that fewer and fewer people are working in Dongguan.
The wages in Dongguan are disgusting and too low.
Dongguan is no longer a paradise for workers.
I am now in Dongguan Zhenan Science and Technology Park.
You can see there is not a single person in this industrial zone.
Don't come to Dongguan if you want to find a job.
Dongguan East Station used to be the first stop for many migrant workers heading south.
Everyone came to Dongguan to work with bags full of confidence.
Now, look at how many people are carrying their luggage back home.
It is really difficult to find a job this year.
Many factories cannot receive orders, resulting in more and more people becoming unemployed.
Those who have jobs now should cherish them.
The U.S.-China tariff war is in full swing, with the U.S. imposing a 145 percent tariff
on Chinese imports and China imposing a 125 percent tariff on U.S. goods.
The tariff war has had a significant impact on China's export trade.
A large number of foreign trade companies,
especially those specializing in exports to the United States, have seen orders disappear,
companies suspend operations and production, and are finding it difficult to survive.
The impact of the tariff war on Dongguan, the world factory, is beyond imagination.
Let's talk about related topics today.
Dongguan is a world-renowned manufacturing center,
especially famous for industries such as electronics, footwear, and furniture,
which has attracted a large amount of foreign and domestic investment.
However, with the outbreak of the Sino-U.S. trade war,
the supply chain shifted, Taiwanese and foreign capital withdrew significantly,
and the number of unemployed people in Dongguan skyrocketed.
As it was hard to find jobs, 4 million people left Dongguan, and its prosperity faded.
If you work in Dongguan, what impact will the Sino-U.S. tariff war have on us ordinary workers?
If the goods from the Dongguan factory cannot be shipped out, the factory's orders will decrease.
If the factory's orders decrease, the demand for labor will not be as great.
But there are still so many people looking for jobs,
and there may be wage cuts and layoffs in the future.
In the future, more and more people may look for jobs in Dongguan.
So no matter what factory you work in Dongguan,
as long as you can still work normally and your salary is paid on time,
don't resign easily, you must hold on.
There are only two words, hold on, and hold on until the situation improves.
So don't quit easily.
That's all I can say.
The biggest loser in the tariff war is likely to be Dongguan, the world factory.
There are about 14,000 companies of some scale here,
60 percent of which are engaged in foreign trade exports.
Now that orders have plummeted, life is not easy for Dongguan.
A few days ago, I visited an old customer of a Taiwanese company.
The Qingming Festival holiday was originally only one day,
but now it has been extended to five days.
What is the most terrible thing?
In order to survive, these large factories have to turn to domestic sales
to compete with some small local factories for the market.
The entire industry has now become more competitive,
and it is the kind of competition that is competitive to the extreme.
The blogger said that he saw someone raising his arms and shouting online,
clamoring to counter the United States at all costs,
and he couldn't help but want to say something to the other person,
stop shouting, you may be the cost.
The blogger said that this wave of the tariff war
has brought Dongguan's manufacturing industry
the most severe test in nearly 10 years.
Are the bosses in Dongguan sleeping well recently?
Under the influence of the tariff war,
many factories are already complaining bitterly.
Let's first look at the electronics industry.
Even for large manufacturers like Oppo,
the procurement cost of high-end chips will increase by 30 percent.
Production costs at TCL's foundry in Chang'an town
are expected to rise by 15 percent to 20 percent.
There are also more than 200 small electronics factories in Shijitou
that may face the crisis of being forced to suspend production.
The clothing industry is even worse off.
The order volumes of major foreign trade factories
such as Humi's, Lianyi Garment and Xinfeng Garment have begun to shrink.
Originally, one factory had to take orders for dozens of production lines,
but now it is lucky to be able to keep half of them,
not to mention those small garment factories,
many of which have already started laying off employees.
In the plastic toy industry,
the raw material costs of OEM factories such as
Hezhong Hongfeng in Qingxi town have increased by 25 percent.
For educational electronic product manufacturers like NOAA,
the purchase price of wafers has doubled,
and profits are almost being squeezed out.
What's even worse is that some foreign companies
that have set up factories in Dongguan,
such as a well-known British electrical appliance brand,
are considering moving their production line to Vietnam
from their OEM factory in Dalong.
Don't ever come to Dongguan again.
It's really hard to find a job in Dongguan this year.
It's only March, and most factories have already stopped operating.
Even if they recruit again, they only recruit girls.
Some factories set requirements based on age, education level, or height.
Some factory wages have dropped from more than 20 yuan an hour
at the beginning of the year to 17 or 18 yuan now,
which is simply taking advantage of our labor.
In the market, good factories are no longer hiring,
and most factories have few orders.
Factories that used to recruit are now fully staffed,
with 100 to 200 applicants for a position that previously needed just 10.
It's tough for workers this year.
The job market in Dongguan is bleak,
with limited opportunities beyond sales,
factory work, and customer service.
Now, jobs choose us,
unless we have strong personal advantages.
After graduation, I realized how realistic this society is.
Jobs offering 3,000 yuan-slash-month without basic social security are common,
and finding a 5,000 yuan-slash-month job is hard.
My husband and I earn 7,000 yuan-slash-month,
and we aim to save 4,000 yuan this month.
This is our 22nd year working here.
In the first 10 years, I had no savings,
raising three children on a paycheck-to-paycheck basis.
We live frugally, but still lack a house and money.
With elderly parents and young children to care for,
we feel uneasy without savings, so we don't spend freely.
It's hard for unskilled workers like us to find a high-paying job,
so we save every penny.
We often eat noodles without meat, and we're used to it.
Blogger Xiaoyu traveled from Shenzhen to Dongguan for a Huawei interview,
preparing her graduation certificate.
Life feels exhausting, running around just to survive.
Now I have to take the bus for more than 20 stops.
I really can't hold it anymore, have an omelet.
I got on the train, and the navigation showed that it would take two hours,
with more than 20 stops in total.
It was completely wasted.
I've gotten off the bus now, but I still have to walk for half an hour.
I originally planned to scan a small single-breasted one,
but there were no small single-breasted ones around.
We arrived, but the agent said that the place was fully booked for today.
It was only nine o'clock, and it was already full,
so we had to wait until tomorrow.
It's completely useless.
I have to stay in Dongguan for another night
and come back for the interview tomorrow morning.
I can't go back to Shenzhen today.
This is Xiaobianwanhe Commercial City in Chang'an Town, Dongguan.
Many shops are empty.
It was difficult to find a shop in the past.
Why was that?
China Resources also went bankrupt.
The street, which was once crowded with people and bustling with activity,
is now in a different place, and you can no longer see that bustling scene.
It means that the prosperity of an era is gone forever,
leaving only the youth and memories of a generation.
The rent in Dongguan is getting cheaper and cheaper,
and all the large factories with hundreds of employees have moved out,
such as electronics factories and shoe factories.
After they moved away, Dongguan lost at least 100,000 people.
In the past, transferring a store would require
tens or even hundreds of thousands of yuan in transfer fees,
but now no one wants it, even if you don't ask for a deposit.
Those apartments used to be occupied as soon as they were vacated,
but now no one is interested in them.
I have a friend who contracted a large apartment
and spent a lot of money on renovation,
but now no one lives in it.
He is now very confused and helpless and doesn't know what to do.
Under the current situation, how can those landlords survive?
This is the city center of Dongguan, and there is no one there.
Brothers, where are the people?
There is no one on the streets in Dongguan's city center.
It is now past eight o'clock in the evening.
Where have all the people from Dongguan gone?
This is Minying International Trade City in the center of Dongguan City.
There is no one here.
It's the peak season now, when everyone is out having fun after work,
so there are only a few people here.
