China's economic struggles are deepening, leading to a surge in social unrest and labor disputes across the country. The nation's youth unemployment rate has skyrocketed, hitting a record 21.3% earlier this year, a figure so alarming that Beijing has since ceased reporting this data. This economic downturn has led to increased social instability, with strikes and protests becoming more frequent, particularly in the manufacturing and property sectors.
The rising discontent among China's youth is a critical factor. In 2023, a staggering 11.79 million college graduates entered a stagnant job market, where opportunities are dwindling, and salaries are shrinking. Many young job seekers have been forced to lower their salary expectations by as much as a third, highlighting the grim economic reality facing China's next generation. The overall unemployment rate also saw an uptick, reaching 5.2% in July, marking the first increase since February. This situation has placed significant pressure on the Chinese government to stabilize employment, especially for key groups like university graduates, migrant workers, and ex-service members.
China On The Verge: Welfare State Crumbles, Explosion In Social Unrest As Youth Unemployment Soars, Strikes Surge https://t.co/Zbi8FLv4ds
— zerohedge (@zerohedge) August 20, 2024
The Chinese government's response to this crisis has been one of data manipulation and repression. In an attempt to prevent widespread panic and unrest, authorities have revised the way unemployment statistics are reported, splitting age groups and applying new methods that paint a more stable economic picture than reality suggests. However, these measures have done little to quell the growing dissatisfaction among the populace.
Labor strikes have surged, with a 3% increase in incidents reported in the first half of 2024 alone. The property and manufacturing sectors, crucial pillars of China's economy, have been hit the hardest, accounting for 80% of these strikes.
This hasn’t aged well…China is in a huge collapse…Economy melting down, marriage and population decline, severe unemployment, massive social unrest, political corruption, capital and manufacturing leaving, health emergency, tainted food, flooding, extreme local debt, real… https://t.co/8LQFsU7kZY
— Lance Robert Schmidt (@LRSPatriot) August 21, 2024
Notable incidents include protests at Akcome Technology, a solar panel manufacturer, and a large-scale strike at Yangzhou Baoyi Shoe Manufacturing, which supplies major global brands like Nike and Adidas. These strikes underscore the broader discontent with low wages, long working hours, and inadequate social security coverage, particularly for migrant workers.
The government's attempts to maintain control are evident in the strict censorship and suppression of information. Protests, though frequent, are rarely reported in Chinese media. However, signs of public discontent continue to emerge, such as the recent protests by ex-soldiers and democracy advocates, which were widely circulated on social media platforms like X (formerly Twitter). These incidents reveal a society increasingly frustrated with the lack of political freedom and economic opportunity.
The deteriorating economic conditions are further exacerbated by China's slowing growth. The economy expanded by just 4.7% in the second quarter of 2024, down from 5.3% in the first quarter. This slowdown is primarily driven by a persistent downturn in the property sector and weak domestic consumption. As a result, some industries have turned to exports to maintain profitability, leading to tensions with trade partners, including the United States.
The growing social unrest in China highlights the fragile state of its economy and the increasing challenges faced by its government. As unemployment continues to rise and economic conditions worsen, the risk of widespread instability looms large. The Chinese Communist Party is now grappling with how to manage a restless population that is becoming increasingly disillusioned with the promises of prosperity and stability that once defined the country's rapid rise.
all the companies are leaving china for India and Vietnam. Now the USA needs to put massive tariffs on china to force compliance withe safety and environmental standards.