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Impacts of U.S. Tariffs, Factory Closures, and Worker Protests Mark Economic and Social Tension in China, According to Reports.
China is facing a situation described as increasingly difficult. Economic impacts linked to American tariffs are pointed out as a key factor. According to MSN, there are reports of factories halted in China. Mass layoffs and worker protests are also said to be occurring. The source mentions that the U.S. government increased tariffs on products from the Asian country to 245%. In response, the Chinese government retaliated, for example, by suspending rare earth exports.
Impact of American Tariffs on China’s Economy
The U.S. tariffs on products from China have been significantly raised. The textual source mentions an increase that raised the rate to 245%. It claims to possibly be the highest tariff ever imposed by the U.S. on any country. The stated reason is the initial retaliation to the first American tariffs aimed at protecting U.S. workers.
While over 75 countries sought trade agreements with the U.S., the Asian country opted for confrontation, according to the source. With such high tariffs, trade between the two countries may virtually disappear. The text suggests that ordinary citizens will be the most affected by this situation.
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Rare Earths as Retaliation
One of the most serious retaliations from China, according to the text, was the suspension of rare earth exports to the United States. These 17 chemical elements are described as essential for modern technology. Semiconductors, electric vehicle motors, fighter jets, and wind turbines rely on them.
The country is believed to have recognized the strategic importance of these minerals long before other countries. Since the 1990s, it has implemented a strategy to dominate this market. The source claims that today the Asian country controls 70% of the global rare earth production and 90% of the magnets made with these materials. This dominance is said to have been achieved, in part, by less stringent environmental regulations in the refining process, which generates a lot of toxic waste, making production cheaper.
Factories Closing and the Internal Economic Crisis
The text reports that factories are closing en masse in China. Consequently, many workers are not receiving their final wages as businesses are going bankrupt. A specific example cited is Volkswagen in the city of Nanding. Workers from a factory, which is set to close after 16 years, are protesting over salary issues.
The source even claims that Volkswagen would announce the closure of all its factories in the country, one after another. It is pointed out that the economy was already facing serious problems before this. There are mentions of the bursting of a real estate bubble, a deflationary economic situation (constantly falling prices), and the impacts of the “zero COVID” policy.
Protests and Growing Discontent Against the Government in China
Something described as unexpected is happening in China: open protests against the government. Citizens are demonstrating their dissatisfaction with leader Xi Jinping within the Chinese territory.
An example cited was banners hung in the city of Chengdu with pro-democracy messages, such as: “There is no national rejuvenation without political reform and democracy is the way.” The source emphasizes the enormous courage required for such acts due to the strong surveillance apparatus.
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