As tensions between China and the United States intensify amid a renewed trade war, Beijing is now confronted with a mounting crisis at home. A recent Freedom House’s China Dissent Monitor report indicates a steep increase in economic protests nationwide, indicating growing discontent with the Communist Party rule.
The report says that economic protests increased by 41% in the fourth quarter versus last year’s corresponding period. The increase is simultaneous with a string of belligerent US tariffs, a new batch topping out at 245% on Chinese imports, unveiled by the administration of President Donald Trump. The White House invoked China’s retaliatory steps and export restrictions as reasons for the sweeping trade measure.
Growing Unrest in Post-Pandemic China
The uptick in protests is blamed by the report on China’s prolonged economic slowdown, especially after the easing of severe COVID-19 restrictions in 2022. Ever since, increasing unemployment and deteriorating real estate crisis have bred general panic. While spontaneous demonstrations are to be expected in China, the recent spike in frequency and magnitude suggests a widening gap between the people and the state.
In addition to the government’s typical repression of dissent, more expressions of frustration have been witnessed during the post-pandemic period, particularly due to losing jobs and financial instability.
Consumer Suffering Grows as Job Market Slumps
As US tariffs are finally implemented, fears of job security and income loss are on the rise. According to a Morgan Stanley survey, 44% of Chinese consumers are concerned about unemployment at home. To back this up, a QuantCube Technology job openings index indicates a 30% year-over-year decline in hiring activity based on data from more than 2,000 companies.
The combination of external trade pressure and internal economic malaise poses a serious challenge to Beijing, since public frustration keeps building up.
