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Analysis: How China Can Cushion Jobs Blow From Trump’s Trade War

Published: Apr. 21, 2025  7:55 p.m.  GMT+8
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China could see nearly 6.9 million jobs affected as a result of the U.S.’ “reciprocal tariffs.” But the government has options to cushion the impact. Photo: AI generated
China could see nearly 6.9 million jobs affected as a result of the U.S.’ “reciprocal tariffs.” But the government has options to cushion the impact. Photo: AI generated

The China-U.S. trade row poses risks to employment in China.

First, there could be a direct impact on companies in the export industry, who will face declining orders and a contraction in their business activities.

We could also see an indirect impact. Faced with the pressure of high tariffs, some businesses could relocate production to Southeast Asia or Latin America, where tariffs are lower. At home, declining export orders from manufacturers will impact upstream and downstream sectors, such as raw materials, shipping, logistics and warehousing, affecting employment across the supply chain.

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