UK media: Blockage of the Strait of Hormuz has triggered a global surge in oil prices, with China's manufacturing hubs such as Guangzhou and Foshan hit first and hardest: textile traders report cost increases of about 20%, reduced orders, accumulated inventories, and temporary workers earning only 18 to 20 yuan per hour.
China has to some extent mitigated the energy shock thanks to its oil reserves and advantages in new energy sectors. Export performance of electric vehicles has been impressive—350,000 units exported in March alone, a year-on-year increase of 140%. However, blocked Middle Eastern shipping routes have caused severe port congestion for EVs originally destined for the Middle East, which accounted for 90% of exports. As a result, merchants are now shifting focus toward emerging markets such as Africa and South America.
At the Canton Fair, high-tech products like humanoid robots and AI glasses showcased Beijing’s desired image of "Future China" to the outside world—but nearly all goods have seen price increases.
Analysts from the Chatham House think tank pointed out that China is not truly a winner in this conflict, but instead hopes for a controlled situation.
Original article: toutiao.com/article/1863225615035399/
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