JUANA SUMMERS, HOST:
Chinese manufacturers have not had it easy these past few years. U.S. tariffs and the wars in Ukraine and Iran push up their costs and shrink profits. But one sector is thriving despite all of this.
(SOUNDBITE OF TILES SHUFFLING)
SUMMERS: It's mahjong. The Chinese tile game has been trending in the U.S., and it's given a boost to one mahjong manufacturing hub. NPR's China correspondent Jennifer Pak has this story.
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JENNIFER PAK, BYLINE: At a two-story village home that doubles as a mahjong workshop in eastern China's Taixing City (ph), three workers line brown tiles on boards. They hold them up to the light, noses close to the tiles.
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PAK: Once they spot an imperfection, workers pluck the tile...
(SOUNDBITE OF TILES FALLING)
PAK: ...And drop it into a milk crate. Every tile must be perfect, says one of the workshop's owners, Wang Hao (ph).
WANG HAO: (Speaking Mandarin).
PAK: "Our clients are selling these mahjong sets for 3- to $400, sometimes more," he says, "and we make them for about $30 a piece." At such high profit margins, he says, none of his clients are complaining about raw material costs or U.S. tariffs. Taixing producers say they can't manufacture fast enough, which is partly why Wang went from just selling mahjong to also manufacturing in the last few months.
WANG: (Speaking Mandarin).
PAK: "When I started selling last year," he says, "the supply of mahjong was tight. Even if I paid the factory, it wouldn't necessarily guarantee I'd get it in time."
UNIDENTIFIED PERSON #1: (Laughter).
(SOUNDBITE OF TILES CLATTERING)
UNIDENTIFIED PERSON #2: OK, and go.
PAK: Because the mahjong taking off in the U.S. is not the same as the traditional ones this town has been manufacturing, you can hear the difference.
(SOUNDBITE OF TILES CLATTERING)
PAK: Chinese mahjong is usually made from melamine, which gives the tiles this heavy stone-like feel...
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PAK: ...Versus mahjong preferred in the U.S. They're smaller, more colorful and use a different material, acrylic, which means a different manufacturing process and different machinery - new investment, says Wang.
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PAK: One of the early movers was this mahjong factory further north in Taixing City.
ZHU XINGYAO: (Speaking Mandarin).
PAK: The boss, Zhu Xingyao (ph), is a second-generation mahjong-maker. They used to manufacture mainly for China.
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PAK: But now every mahjong set coming off these machines is exported to the U.S. - acrylic tiles in sparkly red, seafoam green, engraved with flowers and Santa Claus for Christmas. Zhu says he's too busy to focus on the China market.
ZHU: (Speaking Mandarin).
PAK: "That cake is only so big, and everyone wants a slice, so the market becomes cutthroat."
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PAK: There's a Chinese term for it, neijuan, or involution. And that's something I've heard practically in every sector these days. And the competition comes from within.
ZHU: (Speaking Mandarin).
PAK: "For example," he says, "people who used to work in our factory saw we had good business. So they'd go back to their hometowns and set up their own factories with relatives."
ZHU: (Speaking Mandarin).
PAK: "And wages in those places, like Henan and Anhui provinces, are lower," he says, "which means they can produce each set of mahjong for a dollar or two less than ours."
(SOUNDBITE OF MATERIAL TEARING)
PAK: "Multiply that by 10 or 20,000 sets a year," he says, "that's significant savings for a client who is also under intense pressure."
(SOUNDBITE OF TILES CLINKING)
PAK: "But American clients care more about quality and reliability of manufacturers," says Wang, back at his workshop. A potential client of his who is visiting agrees.
JU JIAOJUAN: (Speaking Mandarin).
PAK: Ju Jiaojuan (ph) comes from a family of traditional mahjong makers. She's looking to export Wang's mahjong designs to the U.S. and catch the momentum.
JU: (Speaking Mandarin).
PAK: "The opportunity lies in the next two, three years," she says, "because after that, more people will manufacture, competition increases, and profits will drop somewhat. The most important," she says, "are the details."
"Even down to the packaging," says Wang.
WANG: (Speaking Mandarin).
PAK: "The mahjong tiles have to be wrapped just right," says Wang, "no gaps or softness. Too loose, and it ruins the unboxing experience." He says, "Check TikTok." Sure enough...
(SOUNDBITE OF TIKTOK VIDEO)
UNIDENTIFIED TIKTOKKER: OK. Apparently, popping mahjong tiles to open them up is, like, a thing.
PAK: ...American buyers love to crack the packaging to make the tiles pop out.
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WANG: (Speaking Mandarin).
PAK: In the middle of the interview with Wang, he gets a WeChat call...
WANG: (Speaking Mandarin).
PAK: ...Another order to rush in time for the holiday season. Jennifer Pak, NPR News, Taixing City, Eastern China.
(SOUNDBITE OF AV HAMILTON AND HIJINX SONG, "DOWN!") Transcript provided by NPR, Copyright NPR.
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