President Donald Trump’s tough stance on China is already producing results, and the evidence suggests that Chairman Xi Jinping will have no choice but to back down. The Chinese economy, long propped up by unfair trade practices, is starting to crumble under the weight of Trump’s strategic 145% tariffs on Chinese imports.
Protests from furious factory workers in China demanding back pay are spreading across the country after President Trump’s tariffs on Chinese imports began impacting the communist nation’s economy.
Unrest has been reported across the country as workers have taken to the streets protesting unpaid wages and challenging unfair dismissals following the closures of factories squeezed by US tariffs, according to Radio Free Asia.
Chinese industry leaders, meanwhile, are “extremely anxious” about the steep duties, with many telling factories and suppliers to halt or delay supplies, Wang Xin, head of an industry group representing more than 2,000 Chinese merchants told the Financial Times.
The scale of the crisis is staggering. Goldman Sachs’ analysis indicates that 16 million Chinese jobs are at risk due to Trump’s tariffs. Chinese industry leaders are reportedly “extremely anxious” about the steep tariffs, which is likely an understatement given the mounting evidence of economic turmoil.
“It’s not easy at the moment,” a 26-year-old toy factory worker told the FT. His employer, in the Chinese city of Zhejiang, mostly sells to the US, and management recently forced workers to take two weeks off unpaid in the face of the tariffs.
Last month, construction workers threatened to throw themselves off the buildings they were working on unless they received their unpaid wages in the northeastern city of Tongliao, Radio Free Asia reported.
Elsewhere, a sporting goods factory in southern Hunan province also shut without warning last month, offering no compensation or social security benefits, leading hundreds of workers to go on strike, the outlet said.
But here’s the key point that the mainstream media keeps missing: China’s social safety net is practically nonexistent. When Chinese workers lose their jobs, they’re completely on their own: no unemployment benefits, no food stamps, nothing. That’s why we’re seeing increasing unrest as workers demand back pay and protest unfair dismissals.
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The Chinese Communist Party maintains its grip on power through economic growth and iron-fisted control. But when millions of workers take to the streets, even totalitarian regimes start to sweat. History shows that no government, not even one as powerful as China’s, can ignore the fury of its people indefinitely.
Last month, Kevin O’Leary predicted that China’s economy would face serious pressure if the U.S. got tough on trade, which it has. He pointed out that millions of Chinese factory workers rely on American demand, and without access to it, China risks internal unrest or potentially economic collapse if the government prints money to keep people employed.
This vindicates what Trump has been saying all along: China needs us far more than we need them. While some American companies are feeling the pinch from the tariffs, our diverse economy and robust worker protections provide a crucial buffer. China enjoys no such luxury. If Xi wants to stay in power, he’ll have to cave sooner rather than later.
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