China erupts in worker protests as Trump’s tariffs devastate factory sector, leaving thousands unpaid and unemployed.
At a Glance
- Workers across multiple Chinese regions are protesting unpaid wages and sudden factory closures resulting from U.S. tariffs of up to 145%
- Goldman Sachs estimates China could lose up to 16 million jobs as export orders plummet to levels not seen since COVID lockdowns
- Desperate construction workers in Tongliao threatened to jump from rooftops if not paid, while female factory workers over 50 face termination without compensation
- China has quietly lifted $40 billion in tariffs on 131 U.S. import items despite maintaining public resistance
- President Trump refuses to lower tariffs, claiming they are achieving their intended effect of stopping China from “ripping us off”
Manufacturing Collapse Triggers Nationwide Protests
Worker protests are erupting across China as President Trump’s tariffs continue to wreak havoc on the nation’s export-dependent economy. Demonstrations have been reported in multiple regions including Sichuan, Inner Mongolia, and areas near Shanghai, with workers demanding back pay after factories abruptly shuttered operations. According to Freedom House’s China Dissent Monitor, 41% of protests in China during the third quarter of 2024 were worker-driven, with approximately 75% related to economic issues including unpaid salaries and land disputes.
With U.S. duties on Chinese goods at a minimum of 145%, American customers have canceled or suspended orders en masse, devastating production at thousands of factories. At an LED light manufacturing plant near Shanghai, workers rioted after not receiving wages. In Dao County, Guangxin Sports Goods employees went on strike after the factory closed without providing compensation. The company reportedly terminated over 100 female employees over age 50 without paying due wages or providing retirement assistance, highlighting the particularly vulnerable position of older workers in China’s economic downturn.
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Economic Damage Reaches Critical Levels
The economic impact of Trump’s tariff policy has been severe and widespread across China’s manufacturing sector. Approximately 15% of Chinese exports were destined for American markets last year, and the dramatic reduction in these orders has sent shockwaves through China’s economy. In Sichuan, a firm producing flexible circuit boards has not paid wages since the beginning of 2024 and has withheld social security benefits since June 2023. Similarly, migrant workers in Shaanxi province’s Xi’an prefecture have gone without wages since February, leading to increasingly desperate demonstrations.
“They were making from us a trillion dollars a year. They were ripping us off like nobody’s ever ripped us off. They’re not doing that anymore.”, said President Trump.
The situation has become particularly tense in Tongliao, Inner Mongolia, where construction workers threatened to jump from rooftops if their wages remained unpaid. China’s export orders have plummeted to their lowest levels since the COVID lockdowns, with Goldman Sachs estimating that the country could lose up to 16 million jobs. Garment exporters and textile managers are engaged in desperate price wars as they compete for a shrinking pool of international orders, with many already reducing their workforce or shutting down completely.
Political Implications and Response
The growing unrest bears similarities to the 2022 protests against President Xi Jinping’s COVID lockdown policies, which were ultimately met with a harsh government crackdown. Observers note that Xi is likely to take decisive action to maintain his grip on power in the face of these economic challenges. Despite China’s public posturing, the government has quietly lifted $40 billion in tariffs on 131 U.S. import items, suggesting a recognition of the severe economic pressure the country faces even while maintaining a tough public stance.
“Xi today has the same mentality as Mao. His bottom line is that no major crisis will be allowed to endanger his hold on power.” – an adviser to the Chinese government said.
President Trump has made it clear he will not lower tariffs to entice China to negotiate, despite acknowledging the severe impact on China’s economy. He has claimed the tariffs are achieving their intended effect of reducing China’s economic gains from the United States. Chinese business owners, meanwhile, face difficult choices as their traditional markets evaporate. As one business owner expressed, “To be frank, personally speaking, all we can do is go out and look for new opportunities,” highlighting the adaptation necessary for survival in China’s dramatically shifting economic landscape.
