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The ramifications of the tariff war extend far beyond individual factories. China's textile industry has faced similar existential threats, accumulating unsold fabric and raw materials in warehouses as production halts. The fear surrounding reduced export opportunities fosters a sense of panic among factory owners and workers alike, as they weigh the alternatives of shifting to a struggling domestic market plagued by oversupply.
One source notes the considerable inventory challenges faced by manufacturers, essentially stranded with mountains of unsold goods while simultaneously managing crippling operational costs. The combination of these pressures, alongside the potential for mass layoffs, poses a risk of severe social and economic consequences.