In China they are sometimes called the "Christmas Wongs." Hong Nan Wong and his wife Jasmine run the factory that tools the tinsel for Christmas trees around the world. They produce thousands of miles of it, along with hand-decorated bobbles and bells.

They even make the Christmas trees that are exported to America's K-Marts, Wal-Marts and a dozen other retail chains.

But this year the Christmas forecast is looking a bit bleak. Orders for American retail stores are down 50 percent. The Wong's Christmas tree factory is churning at two-thirds instead of full speed.

VIDEO: Dana Lewis Reports on the Deep Freeze in Holiday Profits

"During this economic downturn, I think you can describe it as our customers having a christmas cold. And the cold, we hope, will recover," the Wongs tell FOX News.

The entire Chinese town of Yi Wu is feeling the Christmas pinch. The mile-long town is home to the biggest small commodities trade market in the world, but the whole area is feeling a hampered Christmas spirit.

"We're not thinking about making profits this year just try ing to keep our business going," Wong said.

The largest factories report sales slumping sales down 30 percent. And in a town known by many as the Wall Street of counterfeiting, even knock-off watches are on sale.

If you walk one mile in Yi Wu, you suddenly realize just how much is made in China, and it becomes hard to imagine which products are not. But the fact is -- many of the factories are empty. It's no wonder that year on year exports from China are down 23 percent.

Yi Wu's Christmas exports are in a deep freeze.At least if they dant sell this year, Santa will still be playing the same tune next year.

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