China in Crisis: Protests, Factory Shutdowns, & Economic Impact of U.S. Tariffs Across multiple cities in China, workers are taking to the streets in growing numbers, demanding unpaid wages and protesting widespread job losses. At the Shuni Opto Electronics factory in Wujiang, Jiangsu Province, employees chanted “Pay my wages!” in unison, launching a strike that later evolved into a demonstration in front of a local government office. Similar unrest is spreading to factories like Shangda Electronics, where strikes are also underway. These protests, initially rooted in economic grievances, are becoming increasingly political as frustration mounts over the Chinese Communist Party's (CCP) response to the crisis. According to the video report, these protests are growing exponentially. Workers are reacting to shuttered factories, unpaid labor, and the CCP’s efforts to suppress dissent. Protesters face police arrests, and their voices are often silenced by aggressive online censorship. As demonstrators contact foreign media to bypass the domestic blackout, the central government has intensified its clampdown, targeting both domestic outlets and foreign platforms like YouTube. The economic crisis appears to be driven in large part by U.S. tariffs, which have disrupted China’s export-dependent industries. One factory owner, who ran a cardboard packaging business, revealed that most of his orders had been canceled, leaving him idle. In the lighting sector, approximately 80% of his clients were affected. These anecdotes illustrate a broader economic truth: many of China’s manufacturing businesses operate on razor-thin margins and are highly vulnerable to shifts in international demand. While the CCP claims that China is not reliant on the U.S. market, multiple factory owners contradict that narrative. They say they can no longer pay workers or operate without orders from the United States. In a move not publicly announced, the CCP reportedly rolled back tariffs on \$40 billion worth of U.S. goods—including airplane parts, semiconductors, and ethanol—indicating a quiet admission of economic vulnerability. When a Chinese business magazine reported this, the article was swiftly deleted from its website and social media. This crisis reveals the structural dependency of China’s economy on foreign trade. Official figures from the Chinese Ministry of Commerce estimate that 100 million jobs are tied to exports, with 19 million directly linked to trade with the United States. The actual proportion of Chinese exports to the U.S. may be closer to 30% when accounting for transshipment and reshoring tactics. These practices include routing goods through countries like Vietnam, Cambodia, and South Korea, where they are relabeled to avoid tariffs before entering the U.S. The U.S. administration, led by President Trump, is leveraging this trade imbalance in ongoing negotiations. Treasury officials such as Scott Bassen estimate that China could lose 10 million jobs if the trade war continues at current levels. The U.S. imports approximately five times more from China than it exports, reinforcing the perception that China has more to lose in a prolonged dispute. Several countries are now cracking down on China's transshipment practices. Vietnam has introduced harsh penalties—including up to 20 years in prison—for companies falsifying certificates of origin. Cambodia is taking similar steps, and South Korea recently seized \$20 million in mislabeled Chinese goods. These coordinated efforts appear to be a direct response to diplomatic pressure from the U.S., aimed at closing the loopholes China has relied on to circumvent tariffs. Beyond trade, the administration’s broader strategy toward China addresses issues like fentanyl production, Chinese control over the Panama Canal, and the country’s global alliances. The Trump administration appears focused on reshaping China's geopolitical behavior, not just its economic practices. Officials point to rising unemployment and declining exports as key pressure points that could lead to further instability within China. The CCP’s longstanding deal with its citizens—economic growth in exchange for political compliance—is showing signs of strain. Rising unemployment across the country threatens to undermine this tacit agreement. Even small increases in unemployment equate to tens of millions of job losses in a country of China’s size. Economic stress has a cascading effect: job losses reduce consumer spending, which in turn harms other sectors and deepens the downturn. In response, Xi Jinping is consolidating power and eliminating perceived threats within the party. The removal of the second-in-command in the People’s Liberation Army underscores growing fears of internal dissent. At the same time, the U.S. is taking advantage of this moment of instability. The CIA has launched a Mandarin-language recruitment campaign targeting disillusioned Chinese citizens. The ads focus on themes of betrayal, injustice, and lost hope—encouraging individuals to share information in exchange for a better life in the United States. As tensions rise, the CCP faces simultaneous pressures: economic deterioration, growing civil unrest, internal power struggles, and foreign intelligence operations targeting their personnel. The convergence of these crises may present the most serious challenge to Xi Jinping’s leadership since he took power.