Along the Pearl River in southern China, a fast-growing industry is churning out cheap clothes and toys that are flooding the world duty-free.The New York Times reports that rows of white concrete buildings near the Pearl River in southern China are home to one of the world’s fastest-growing industries. These gritty workshops are responsible for producing inexpensive clothing that is exported directly to homes and small businesses around the world, without paying tariffs or undergoing customs inspections.
The laborers who work in these factories earn as little as $5 an hour, including overtime, for grueling workdays that can last up to 10 hours. They also pay $130 a month to sleep in cramped rooms above the factories, surrounded by sewing machines and piles of cloth.
One worker, Wu Hua, shared that the work is difficult and he works seven days a week at a factory in Guangzhou, a bustling city that spans the Pearl River.
E-commerce giants have established strong connections between international markets and workers like Mr. Wu, causing major disruptions in the retail industry and global economies.
The number of duty-free shipments to the United States has increased by over tenfold since 2016, reaching four million parcels per day last year. Similar shipments to the European Union have grown even faster, with 12 million parcels per day in 2019. Developing countries such as Thailand and South Africa have also seen a surge in duty-free shipments.
However, a global backlash is now underway. In response to this issue, President Trump issued an order on February 4th to halt the duty-free entry of parcels with goods worth up to $800, without inspection. This has caused a temporary suspension of the order as officials work to develop a plan for dealing with the large number of parcels that have already piled up at airports for inspection.
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