Hard to pivot: why China’s exporters struggle to sell at home despite trade war

A Chinese company that exports straws and food packaging materials spent 30 million yuan (US$4.16 million) last year to comply with stricter environmental standards in Western countries. Although the costs to upgrade its production facilities were steep – roughly equivalent to the profits the firm would make selling tens of millions of straws – the potential in the US and European markets seemed to justify the investment.
And they were right – in theory.
By betting on the growing environmental…


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