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Chinese Manufacturers Facing A Bigger Test Than Tariffs The Trump administration may have put a pause on tariff hikes, but some Chinese manufacturers are bracing for another crisis as the closure of the Strait of Hormuz drags on. “The cost of materials is going up and down like the stock market every day. I’m having a heart attack,” says Chris Tay, founder of No Ordinary Drinks, a Chinese beverage company that also exports grape juice and yuzu water to Southeast Asian markets. From PET bottles and aluminium cans to plastic caps and labels, many of its raw materials are derived from oil. “It affects our margin by 30 to 45 basis points, which is a lot for us,” Tay says. Tay’s company is absorbing the cost for now rather than putting up its selling price, while talking to suppliers on a daily basis. But if the stand-off doesn’t blow over soon, “the entire value chain from the upstream supplier all the way down to my customers will take a hit,” he adds. On the whole, the Chinese economy is more insulated from oil shocks than other Asian countries, thanks to its stockpiles of crude oil and diversified energy sources. But in sectors from bottled water and household appliances... https://www.thewirechina.com/2026/06/07/chinese-manufacturers-facing-a-bigger-test-than-tariffs/