As China deals with a full-blown tariff war with the world’s largest economy, a bigger crisis may be simmering at home, signalling a double whammy for China’s ruling communist party. According to a report compiled by Freedom House’s China Dissent Monitor, the number of ‘economic protests’ is drastically rising in China, especially after US President Donald Trump set off a trade war with the world’s second-largest economy.
The report said that the number of economic protests has risen by 41 per cent when compared to the previous year in the fourth quarter.
“The prolonged economic malaise in China is leading to accumulated social conflict and dissent by citizens,” the report said.
President Trump’s administration has announced a sweeping new tariff of up to 245 per cent on Chinese imports, significantly escalating the trade conflict between the two nations. The White House, in a fact sheet released late Tuesday, said the move is a direct response to Beijing’s recent export restrictions and retaliatory tariffs. This latest measure marks one of the most aggressive steps taken in the ongoing trade dispute, highlighting growing tensions between the two economic powers.
Protests rising since Covid restrictions relaxed
According to the report, the number of protests has been rising in China since the Covid-19 restrictions were relaxed in 2022. Following the pandemic, China’s unemployment rate soared, and the housing crisis worsened, leading to these protests.
Notably, protests and activities showing dissent are rare in China and are dealt with heavy-handedly by the communist regime. While petty disputes and contained incidents are common, a nationwide, coordinated protest is hardly seen.
Economic anxieties set to deepen
Furthermore, economic anxieties are expected to deepen as the new US tariffs take effect, with rising concerns among households about job security, income stability, and investment losses.
According to Morgan Stanley, nearly 44 per cent of consumers in China now fear that they or a family member could lose their job, based on a survey conducted shortly after the most recent tariff hikes between the US and China.
Supporting these concerns, a job openings index compiled by Paris-based QuantCube Technology has shown a sharp decline—plunging nearly 30 per cent year-on-year over the past two months. The index draws from online job postings by more than 2,000 companies, highlighting a broader slowdown in hiring across sectors.