Some Chinese exporters lift prices on rising costs due to war

The rare hikes are a sign that soaring raw material costs are starting to drive consumer inflation. Read more at straitstimes.com.

Some Chinese exporters are raising prices on goods from toys to yoga pants and medical catheters, as fuel shortages from the Iran war push up raw-material and production costs in the conflict’s fourth week. 

Exporters across the world’s second-largest economy – from online sellers to bulk suppliers for US and European clients – began raising prices last week as oil-linked costs surged and the conflict showed no sign of easing, according to five exporters interviewed by Bloomberg News. The increases range from low single digits to the teens, they said.

Ms Pang Ling, a sales manager at Shanghai‑based medical catheter maker, has spent recent days calling to urge mostly US clients to lock in orders before prices rise. Her company plans a 6 per cent increase from next week, enough to offset most of the jump in input costs, she said. Some customers placed urgent orders, while others stuck to their usual purchasing pace. 

“Rising costs have left us with no choice but to increase our prices – a first in my career,” said the 36-year-old Pang. “It’s a move of last resort, and we’re constantly mindful of the risk that clients might turn to our peers.”

The rare hikes are an early sign that soaring raw material costs driven by fuel shortages stemming from the war are starting to drive consumer inflation. Exporters have struggled with the volatility, which hinders production planning and long-term pricing.

They also show how sharply conditions are shifting for Chinese exporters, who have spent years cutting prices amid intensifying competition and persistent overcapacity. Ms Pang’s company reduced prices by more than 5 per cent for US buyers in 2025 after Donald Trump’s tariffs – a concession that many American retailers demanded as they sought to share the burden.