A worker assembles fireworks at the Southern Fireworks Manufacture Co.'s factory in Liuyang, China. The U.S. fireworks business could lose 5 million to 0 million this year because of shortages of pyrotechnics from China, which provides 98 percent of America's overall supply. The closure of some Chinese ports to fireworks has worsened the shortage.

Liuyang, China ? Chen Tiezhong will likely spend the Fourth of July worrying about the future of his sprawling fireworks factory. China, where fireworks were invented, is running short of ports from which to ship the dangerous cargoes abroad.

China’s fireworks industry provides 98 percent of America’s overall needs and 80 percent of the pyrotechnics needed for professional displays. But the U.S. fireworks business stands to lose $25 million to $30 million this year because of lost orders, says Julie Heckman, executive director for the American Pyrotechnics Association.

A Missouri firm says it backed out of some shows because of the shortage. Meanwhile, some Chinese factories are being pushed close to bankruptcy.

“Our factory will be forced to close, whether we want it or not,” said Chen Tiezhong at his sprawling 500-employee operation in Liuyang in central Hunan province.

His factory is one of 900 around this small city that is known as China’s fireworks capital. A traffic circle features a massive metal sculpture of rockets soaring and bursting into flower-like shapes. The Chinese word for fireworks is “yanhua” or “smoke flowers.”

Most of the factories are far from town, tucked safely away among the farms in surrounding hills and valleys.

Chen rattles off a litany of woes: micro-thin profit margins, rising labor costs and soaring prices for raw materials.

Now, the closure of some Chinese ports to fireworks may be the final straw.

In February, a blast at a fireworks warehouse led to a ban on fireworks shipments at the southern port of Sanshui, Guangdong province, which previously handled 20 percent of China’s pyrotechnic exports.

Then, in late March, officials stopped fireworks shipments at Nanshan, another Guangdong port, after inspectors found explosives that had been declared as something else.