20240531 Li Auto factory 1

Workers assemble electric vehicles at Li Auto's manufacturing base in Changzhou, in China's Jiangsu province, in December 2023. © Getty Images

China's underutilized factories fan export dump fears in U.S. and Europe

As trade partners raise tariffs, Beijing faces pressure to keep workers on job

HONG KONG -- In mid-March, newlywed Lisa joined the production line at a just-built electric vehicle plant of Li Auto, a star of China's burgeoning EV industry. She hoped to help cover the couple's living expenses in Beijing, but she worked only a dozen days in April and three in May.

"We were told that our pure electric vehicle sales are weak due to the bad [business] conditions, so the company has to cut production," said the 27-year-old, who only gave her English name. She added that more than 1,000 workers were told they could either resign or wait it out on a minimum wage until things get better.

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