Mass protests erupt across China as Trump tariffs trigger economic crisis

05/04/2025 / By Laura Harris

China is experiencing severe civil unrest, with tens of thousands of workers protesting in industrial hubs like Shanghai and Inner Mongolia over unpaid wages and mass layoffs, driven by economic turmoil and U.S. tariffs.
Trump’s escalating tariffs have crippled China’s export-dependent economy, causing factory closures, plummeting orders and financial distress for millions of workers, exacerbating existing crises like the property market collapse.
The CCP is responding with heavy-handed suppression, deploying riot police and censoring dissent, but protests persist, reflecting growing desperation among workers.
U.S. tariffs have accelerated the shift of production out of China to Taiwan, Vietnam and Mexico, further undermining confidence in Beijing’s economic management.
Beijing has signaled willingness to resume trade negotiations with the U.S. but demands the removal of all tariffs as a precondition.

China is facing its worst civil unrest in decades as waves of protests sweep industrial and manufacturing hubs, fueled by economic turmoil exacerbated by U.S. tariffs and a deepening property market collapse.

Over the past two weeks, tens of thousands of workers have taken to the streets in cities from Shanghai to Inner Mongolia, demanding unpaid wages and protesting mass layoffs as export-dependent factories buckle under the weight of President Donald Trump’s escalating trade war.

The latest round of U.S. tariffs has dealt a devastating blow to China’s already faltering economy. Export orders have plummeted to levels not seen since the Wuhan coronavirus (COVID-19) pandemic, forcing factory closures and leaving millions of workers unpaid. (Related: TRADE WAR FALLOUT: Chinese factories slow production as U.S. tariffs bite.)

In Tongliao, desperate construction laborers climbed atop unfinished buildings, threatening to jump unless their months of unpaid wages were settled. Near Shanghai, thousands of employees from an LED manufacturing plant blocked highways, demanding back pay dating to January. Similar protests erupted in Dao County after a sporting goods factory abruptly shut down, leaving workers without compensation.

The Chinese Communist Party (CCP) has responded with a heavy-handed crackdown, deploying riot police and censoring online dissent, but the demonstrations show no signs of abating.

China weighs U.S. trade negotiations amid calls for “sincerity”

Trump, who has made economic confrontation with China a cornerstone of his political platform, has said the impact is intentional.

“They were making from us a trillion dollars a year. They were ripping us off like nobody’s ever ripped us off,” he stated in a recent rally. “They’re not doing that anymore.”

The tariffs, first imposed in 2018 and expanded under his potential second-term agenda, have accelerated a manufacturing exodus from China, with companies relocating to Taiwan, Vietnam and Mexico. The shift has eroded confidence in Beijing’s economic stewardship, compounding existing crises, including supply chain breakdowns from Shanghai’s draconian COVID lockdowns and a real estate collapse that has left millions of homeowners in financial ruin.

As a response to the crisis, China’s Ministry of Commerce announced on Friday, May 3, that it is considering renewed tariff negotiations with the United States.

“China has noted the repeated statements from senior U.S. officials expressing a willingness to negotiate with China on tariff issues,” a ministry spokesperson said. “At the same time, the U.S. side has recently taken the initiative to relay messages to China through relevant channels, expressing a desire to engage in talks. China is currently evaluating this matter.”

However, Beijing made clear that any negotiations must be accompanied by concrete actions, including the removal of all unilateral tariffs imposed on Chinese goods.

“If the U.S. refuses to correct its erroneous unilateral tariff policies, it would only prove its complete lack of sincerity and further undermine mutual trust,” the spokesperson said. “Saying one thing while doing another or even using talks as a cover for coercion and extortion – China will not accept this. China’s position has been consistent and clear. We will fight to the end if forced to, but our door remains open for talks.”

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