Up to 16 Million Jobs at Risk? How Trump's Tariffs Could Devastate China's Economy

in Economicslast month

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According to Goldman Sachs 16 million Chinese workers are involved in production of American bound goods these are goods exported to the United States from China these involve products like clothes, electronics and some basic everyday products.
Due to Trump Tariff fewer orders may come in and companies may start laying off workers which means those jobs could be at huge risk

Also according to a note from Nomura economists. Around 2.2% of China's GDP is directly impacted by U.S. tariffs.

They also estimate that the United States accounted for 14.7% of China's total goods exports in 2024.
A figure that rises to 15.2% when including re-exported goods through Hong Kong, and rises further to 20.6% when factoring in Goods sent by various routes.

It also doesn't stop their factories producing less goods can also hurt other countries depending on them like delivery and shipping services.

To Address this problem the Chinese Government is trying to mitigate this huge manufacturing job losses with higher state investment in labour absorbing public projects like construction and by using the central bank to channel financial resources where new jobs could be created. And also help struggling companies.

In the meantime Chinese affected workers could also rely on the gig economy which is a short term flexible job like ride hailing service and delivery jobs to curb the effect of Trump Tariff.