The trade war between the United States and China continues to escalate, with the Chinese Communist Party taking a tough stance while facing the dilemma of standing alone against the United States. Videos circulating on Chinese social media show foreign trade factories shutting down production, with goods piling up and causing panic among manufacturers shifting towards domestic sales. Experts believe that under the impact of the trade war, factory closures in China and increasing unemployment could lead to potential social unrest.
Following China’s retaliatory tariff increase against the U.S. on April 9, President Trump announced an increase of tariffs on Chinese goods to 125%, effective immediately. Trump criticized China for its lack of respect for the global market. He also announced a 90-day suspension of equivalent tariffs for countries that have not retaliated against the U.S., effective immediately. The White House clarified that the 90-day tariff suspension means that tariffs on countries other than China would be lowered to 10% during this period.
Despite China’s efforts to stoke anti-American sentiment domestically, social media continues to expose the harsh realities faced by various industries due to the trade war. Videos shared online depict the dire situation of goods stranded in warehouses, factories ceasing operations, and mass layoffs.
A manufacturing worker in Dongguan expressed concerns about the trade war’s impact on their industry, noting that many factories in Dongguan heavily rely on exports. Unable to export goods, companies are experiencing drastic drops in orders, forcing them to consider shifting towards domestic sales and competing with smaller domestic manufacturers, leading to a challenging situation for all involved.
Furthermore, financial professionals and bloggers across China have shared their perspectives on the repercussions of the tariff escalation. They highlighted the significant disruptions in export businesses, factory closures, and the broader economic consequences, including potential job losses and inflation.
Notably, the recent tariff measures have also led to a wave of factory closures, leaving new manufacturing facilities vacant and undersubscribed, reflecting the growing challenges faced by the manufacturing sector in the context of the ongoing trade tensions.
Amidst the escalating trade dispute, Chinese authorities have tried to control the narrative by blocking discussions related to tariffs on social media platforms. The Chinese Communist Party’s official outlets like The People’s Daily have published articles criticizing the U.S. for its unilateral tariff policies, emphasizing China’s readiness to confront risks and challenges.
In response to the trade war, Chinese officials have invoked historical rhetoric, with references to Mao Zedong’s speeches during the Korean War. However, with the record-high number of college graduates in China this year and the potential for widespread factory closures and layoffs due to the trade war, analysts believe that a wave of unemployment could directly impact China’s political stability.
Experts pointed out that while there are differing opinions within the Chinese government regarding the trade war, the drastic escalation of tariffs against China has put tremendous pressure on the Chinese leadership. The sustained trade dispute with the U.S. may result in significant economic challenges, potentially leading to social unrest and political transformation in China.
Economic analysts caution that the current standoff between the U.S. and China could have severe consequences for the Chinese economy and its people, with job losses and economic disruptions likely to exacerbate social tensions. The uncertainty of the trade conflict’s resolution and the long-term impact on China’s economic stability further raise concerns about the country’s future.