“Exports are not good and the domestic market is also bad,” says Mr Xu, throwing his hands up in resignation. “The price of shipping containers for export has fallen by half . . . and now freight companies as well as factories are worried about going bust.”

While they are accused of dumping on international markets, many Chinese metals producers have already gone out of business themselves because of massive oversupply, a slowdown at home and an uncertain global outlook. GKO, based in Zhejiang province, has responded by pushing its suppliers to cut costs and developing new, higher value products.

After riding China’s construction and car market booms, the company is now trying to tap into another part of the world’s second-biggest economy, one that is still growing: tourism.