A major Bluetooth headphone maker, Dongguan Koppo Electronics Co, has decided to shut down for good and dismiss all its workers, becoming the latest casualty of the economic headwinds, supply chain disruptions and trading woes that have hit China’s manufacturing heartland, reports the South China Morning Post.
Koppo Electronics, which has operated its factory in the city of Dongguan in southern Guangdong province for 12 years, said it was ceasing operations partly because “a number of cross-border e-commerce clients have failed to make due payments.”
“Since the outbreak of the Covid-19 pandemic, global economic and trade flows have seen unprecedented disruptions,” the notice said. “The company has been hit by delayed payments by a number of cross-border merchants, and a huge amount of finished goods are stockpiling in the warehouse.”