There’s red on the ceiling and red on the floor, red dripping from the window sills and red globules splattered across the walls. It looks like the artist Anish Kapoor has been let loose with his wax cannon again. But this, in fact, is what the making of Christmas looks like; this is the very heart of the real Santa’s workshop – thousands of miles from the North Pole, in the Chinese city of Yiwu. Our yuletide myth-making might like to imagine that Christmas is made by rosy-cheeked elves hammering away in a snow-bound log cabin somewhere in the Arctic Circle. The likelihood is that most of those baubles, tinsel and flashing LED lights you’ve draped liberally around your house came from Yiwu, 300km south of Shanghai – where there’s not a (real) pine tree nor (natural) snowflake in sight. Christened “China’s Christmas village”, Yiwu is home to 600 factories that collectively churn out over 60% of all the world’s Christmas decorations and accessories, from glowing fibre-optic trees to felt Santa hats.

The “elves” that staff these factories are mainly migrant labourers, working 12 hours a day for a maximum of £200 to £300 a month – and it turns out they’re not entirely sure what Christmas is. “Maybe it’s like [Chinese] New Year for foreigners,” says 19-year-old Wei, a worker who came to Yiwu from rural Guizhou province this year, speaking to Chinese news agency Sina. Together with his father, he works long days in the red-splattered lair, taking polystyrene snowflakes, dipping them in a bath of glue, then putting them in a powder-coating machine until they turn red – and making 5,000 of the things every day. In the process, the two of them end up dusted from head to toe in fine crimson powder. His dad wears a Santa hat (not for the festive spirit, he says, but to stop his hair from turning red) and they both get through at least 10 face masks a day, trying not to breathe in the dust. It’s a tiring job and they probably won’t do it again next year: once they’ve earned enough money for Wei to get married, they plan on returning home to Guizhou and hopefully never seeing a vat of red powder again.

Packaged up in plastic bags, their gleaming red snowflakes hang alongside a wealth of other festive paraphernalia across town in the Yiwu International Trade Market, aka China Commodity City, a 4m sq m wonder-world of plastic tat. It is a pound shop paradise, a sprawling trade show of everything in the world that you don’t need and yet may, at some irrational moment, feel compelled to buy. There are whole streets in the labyrinthine complex devoted to artificial flowers and inflatable toys, then come umbrellas and anoraks, plastic buckets and clocks. It is a heaving multistorey monument to global consumption, as if the contents of all the world’s landfill sites had been dug-up, re-formed and meticulously catalogued back into 62,000 booths. The complex was declared by the UN to be the “largest small commodity wholesale market in the world” and the scale of the operation necessitates a kind of urban plan, with this festival of commerce organised into five different districts.

District Two is where Christmas can be found. There are corridors lined with nothing but tinsel, streets throbbing with competing LED light shows, stockings of every size, plastic Christmas trees in blue and yellow and fluorescent pink, plastic pine cones in gold and silver. Some of it seems lost in translation: there are sheep in Santa hats and tartan-embroidered reindeer, and of course lots of that inexplicable Chinese staple, Father Christmas playing the saxophone.home decor for dark walls It might look like a wondrous bounty, but the market’s glory days seem to have passed: it’s now losing out to internet giants like Alibaba and Made In China. home decor magazine free ebooksOn Alibaba alone, you can order 1.4m different Christmas decorations to be delivered to your door at the touch of a button. living room cheap curtains

Yiwu market, by comparison, stocks a mere 400,000 products. Aiming at the lower end of the market, Yiwu’s sales thrived during the recession, as the world shopped for cut-price festive fun, but international sales are down this year. Still, according to Cai Qingliang, vice chairman of the Yiwu Christmas Products Industry Association, domestic appetite is on the rise, as China embraces the annual festival of Mammon. Santa Claus, says the Economist, is now better known to most Chinese people than Jesus. The beaming sales reps of Yiwu market couldn’t sound happier with their life sentence of eternal Christmastime. According to Cheng Yaping, co-founder of the Boyang Craft Factory, who runs a stall decked out like a miniature winter wonderland: “Sitting here every day, being able to look at all these beautiful decorations, is really great for your mood.” It’s somehow unlikely that those on the other end of the production line, consigned to dipping snowflakes in red-swamped workshops for us to pick up at the checkout for 99p, feel quite the same way.

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