This year, the Chinese city of Yiwu — the world’s biggest hub for the manufacture of plastic reindeer, twinkle lights and other Christmas paraphernalia — is feeling a Grinch-like pinch.
Factories are being hit by a shortage of raw materials that’s raising their production costs, and once goods are on their way shipping snarls are delaying their journey to the store shelves of the West. Since mid-October, Yiwu has also been affected by China’s ongoing electricity crunch, which has forced manufacturers to hunt for generators, or suspend production altogether.
"I’m so stressed I couldn’t sleep,” said Lou Ting, the owner of a Christmas ornament factory, as she worked her storefront in Yiwu’s biggest wholesale mall. "It should be great that we’re getting more orders than last year, but there are so many uncertainties slowing the delivery process — and there’s nothing we can do,” said Lou, who like many in Yiwu is battling manufacturing delays and record freight prices as she works to get candy canes and pine cones shipped to the U.S. and Europe.