Recently, a window and door processing enterprise in Foshan, Guangdong announced a halt in taking new orders due to financial difficulties and will close down after completing existing orders. Multiple industry insiders in the window and door business in Foshan have noted a significant increase this year in local companies ceasing production and closing down. Even for factories with existing orders, the profit decline, difficulty in receiving payments, and imbalance in accounts along the supply chain have led to the breakdown of the financial chain.
A notice from a window and door enterprise in Foshan has been circulating on mainland China’s social platforms. The notice indicates that the company, due to “financial turnover issues,” will “cease taking all orders with immediate effect and only deliver existing orders.” Products that have been ordered must be completed by the workshop before August 25th.
The company also requested that employee salaries be settled upon completion of each work process and advised employees to “look for jobs and attend interviews simultaneously.” The notice is signed by the company located in Foshan, Guangdong, and dated in 2026.
According to the investigations by reporters, since March this year, many companies in Foshan have either closed down or gone on temporary hiatus, particularly affecting ceramics, sanitary ware, and other building materials enterprises. An employee of a window and door factory in Foshan, Wang Kui, mentioned that the industry he is in is struggling to recover. He said, “Many vacant houses are difficult to sell, and even buying a house involves simple renovations, making it hard to do business in building materials. The speed at which window and door factories in Foshan are closing this year is unprecedented in decades. Many people are retiring and leaving the industry.”
Wang Kui further stated that from last year till now, well-known brands in the industry like Weyersen and Cardello have shut down one after the other, with small and micro processing plants disappearing in large numbers.
After the circulation of the closure notice on the internet, many netizens praised the company for completing orders and settling employee salaries before closure. A netizen from Guangdong commented, “Very good, they have taken deposits for orders and completed the work for customers. Employees are paid in full.” Another netizen said, “A conscientious company.” Some netizens linked the closure of the company to the real estate market, with a netizen from Guangxi stating, “With the decline in the real estate market, the demand for windows and doors has decreased, leading to their decline as well.”
A manager in the window and door supply chain, Ah Qiang, told reporters that one of the significant issues window and door companies face currently is “having orders but no cash,” and the number of window and door companies in Nanhai, Sanshui, and other areas halting production has doubled compared to last year. Many people are unable to find jobs, and the job market is overcrowded, with suppliers visiting factories daily to demand debt repayment, making it unsustainable.
Ah Qiang elaborated, “Nowadays, we can’t even collect payments, which is the most pathological aspect of the Chinese economy. Suppliers of upstream raw materials like aluminum and glass for window and door factories demand cash or extremely short credit terms to mitigate risks, while downstream franchisees and major contractors delay settlements indefinitely. The more orders you take, the more you have to advance for material and labor costs, making it harder to circulate funds.”
Foshan is a crucial production base for window and door and aluminum industries in mainland China. During the rapid expansion of the real estate market, a large number of window and door companies expanded their production capacity to cater to the housing and renovation markets. Now, the collapse of the real estate market has resulted in a decrease in orders across the related industry chain, leading to closures of enterprises.
An industry analyst from Guangdong, Zeng Yi, told reporters that the collapse of the real estate market is a fatal blow to many industries. Building materials, windows, and doors heavily rely on the turnover of new homes and the renovation market. If the downstream real estate market collapses, the upstream industry is inevitably met with a devastating wave of closures. Another reason is the total weakness in private consumption, “Nowadays, ordinary people have no money in their pockets, and businesses are facing high factory rents, tax audits, and a significant drop in income. I predict that in the next six months to a year, the industry will face even more brutal reshuffling, with at least over thirty percent of building material companies forced to exit.”
The dividends of several decades of reform and opening up are now exhausted, with a wave of business closures sweeping across various industries in mainland China. Scholar Mr. Yu bluntly states that in the upcoming times, large and small enterprises will face multiple pressures such as shrinking orders, tax investigations, and heavy fines. The current issues have surpassed normal economic fluctuations, signaling an overall regression of mainland China. Meanwhile, foreign capital is decisively withdrawing, and overseas venture capital is stepping back, indicating a foregone conclusion for China’s future.