{"id":582540,"date":"2026-07-13T00:17:18","date_gmt":"2026-07-13T00:17:18","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/582540\/"},"modified":"2026-07-13T00:17:18","modified_gmt":"2026-07-13T00:17:18","slug":"why-factories-in-southern-china-are-feeling-the-squeeze-despite-pickup-in-orders","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/582540\/","title":{"rendered":"Why factories in southern China are feeling the squeeze despite pickup in orders"},"content":{"rendered":"

As China prepares to release its second-quarter and first-half economic data this week \u2013 with markets generally expecting performance to have softened \u2013 manufacturers in its southern Pearl River Delta<\/a> region offer a nuanced picture.<\/p>\n

While official manufacturing data for June showed continued expansion, electronics exporters in the region \u2013 one of China\u2019s biggest industrial areas and a bellwether for the national economy \u2013 said last week that a pickup in orders had yet to lift their bottom lines.<\/p>\n

Rising raw material costs, tougher payment terms set by vendors, and persistent price competition were squeezing profits, they said.<\/p>\n

Manufacturers said that despite strong export demand, particularly from the US, those pressures could stymie efforts to increase sales and fund new investments or hiring.<\/p>\n

The question being asked on factory floors is whether stimulus measures could ease the cost pressures eating into margins, with all eyes on the midyear Politburo<\/a> meeting, expected to be held later this month.<\/p>\n

At the July meeting of the Politburo \u2013 a major decision-making body of the ruling Communist Party \u2013 policymakers typically assess the country\u2019s first-half economic performance and chart the course for the remainder of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"As China prepares to release its second-quarter and first-half economic data this week \u2013 with markets generally expecting…\n","protected":false},"author":2,"featured_media":582541,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[247563,79,247567,381,247562,118203,179,18,43554,247568,19,247565,17,247566,247564,167834,22229,10522,107,109086],"class_list":["post-582540","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-a-delight-group","tag-business","tag-chen-haibo","tag-china","tag-crossbow-brand-electric","tag-dongguan","tag-economy","tag-eire","tag-guangzhou","tag-huihong","tag-ie","tag-institute-of-contemporary-observation","tag-ireland","tag-lawrence-tan","tag-liang-xiong","tag-liu-kaiming","tag-pearl-river-delta","tag-shenzhen","tag-us","tag-zhongshan"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116909798045400215","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/582540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=582540"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/582540\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/582541"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=582540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=582540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=582540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}