US-China trade war tariffs wreak havoc on Christmas orders with Chinese manufacturers thrown into disarray
- Chinese manufacturers would normally be expecting Christmas orders from US clients about now, but trade war uncertainty is forcing them to change plans
- Next round of tariffs from US President Donald Trump will include smartphones, toys and bicycles, with Chinese exporters saying US consumers will have to pay more
In a factory in Kunshan, an hour’s drive from downtown Shanghai, thousands of metal frames hang from a ceiling, their paint drying as they wait to become bicycles after wheels, handlebars, chains and other final parts are added to them.
This is one of seven production facilities that comprise the giant manufacturing plant of Shanghai General Sports, which produces 3 million bicycles each year, 2.4 million of which are exported to the United States.
In total, 16 per cent of the bicycles America imports from China each year are from the Kunshan factory, which houses a frantic mix of robotic arms and skilled human hands that paint, coat, assemble and package bicycles using components sourced from thousands of suppliers across China.
They enter the US under the Kent International brand, run by Arnold Kamler – a CEO who describes himself as a “student of the Chinese economy” and who affectionately refers to Ge Lei, the general manager of Shanghai General Sports as “like family”.
Usually, Ge is busiest in the run up to September, when the plant make millions of bicycles that eventually become Christmas presents or join retailers’ Black Friday inventories. Production usually ramps down thereafter – but not last year.