Life is so hard, More and more Chinese people can't afford enough food and clothing.

Life is so hard. More and more Chinese people can't afford enough food and clothing. Can't hold on. China to exempt US semiconductors, ethane and aircraft leasing from tariffs. Chinese consumers rush to buy gold bars for risk hedging. Merchants out of stock and require pre-orders to lock in prices. Life is so hard. More and more Chinese people can't afford enough food and clothing. Currently in China, many people are struggling just to afford food and clothing. Factory workers and business owners are in despair, crying over lost orders caused by crushing tariffs. With mass layoffs and bankruptcies on the rise, survival has become a daily battle. No one knows how much longer they can hold on. The United States has imposed reciprocal tariffs on more than 100 countries around the world, and more than 90 countries are currently negotiating with the United States. Only the CCP chose to retaliate, and it has continued to escalate the conflict, pushing the Chinese economy into crisis. A large number of foreign trade companies, especially those specializing in exports to the United States, are struggling to survive. According to reports, in 2018, China significantly increased tariffs on goods exported to the United States, causing a large amount of foreign capital to withdraw from China and triggering a wave of unemployment. Since early April 2025, China and the United States have engaged in another fierce tariff war. Most Chinese goods exported to the U.S. are now subject to a high tariff of 145 percent. As a result, many Chinese factories have shut down or suspended operations, causing an even greater wave of unemployment. Mr. Li, a resident of Suzhou, Jiangsu, said, Now there are fewer orders, many factories have no work, wages are in arrears, some people are too old to work, many are unemployed and can't find jobs, there are fewer job opportunities, and it's hard to make money. Many people can't afford to marry, and many can't afford medical treatment. They bought houses but are now unemployed and have no money to pay the mortgage. Some people jump into rivers or off buildings to commit suicide. Mr. Yin, a resident of Kunming, Yunnan, revealed that the tariff war has affected all sectors nationwide. Local bus company drivers can't even be paid their modest 2,000 to 3,000 RMB salaries. Young people can't get married or raise children. Many kindergartens can't recruit new students and have shut down. Mr. Yin added, The unemployment situation is quite serious. 95 out of 100 people are unemployed. It's truly nationwide. My daughter is 30 this year. She studied abroad and still has no job. The income of the rich has declined, the middle class has become extremely poor, and the poor are struggling to survive. More and more people are collecting garbage. Villagers in Henan revealed that a lot of rural land has been expropriated by the government. Farmers can only go to cities to make a living, but now they can't find work and have had to return to their hometowns. Those with a little savings who invested in business or in raising livestock or planting crops have lost everything. Mr. Li, a villager from Jokhu, Henan, said, I couldn't find a job in the city, so I came back to my hometown. I have no land. It's all been taken away. I don't even have vegetables to eat. I eat rice porridge every day. If I earn 100 RMB a day from work, I buy some rice. If I don't earn 100 RMB, I just starve. Mr. Xu, a villager from Xucheng, Henan, said, The current economic environment is bad. I don't do anything I can't sustain. My friends say the harder you work, the more you lose. So I'm lying flat. I'll hold on as long as I can. I definitely won't start a business. Can't hold on. China to exempt U.S. semiconductors, ethane, and aircraft leasing from tariffs. The Chinese Communist Party appears to have quietly canceled some of its retaliatory tariffs against the United States. According to reports, China is considering exempting certain U.S. imports from the 125 percent retaliatory tariffs. And several Chinese importers have confirmed that authorities have quietly withdrawn tariffs on eight types of semiconductors. In response, the Chinese foreign ministry evaded the question at a press conference, claiming it was not clear about the relevant information. Bloomberg reported that China is considering exempting some U.S. imports from the 125 percent retaliatory tariffs, including medical equipment, certain industrial chemicals, and aircraft leasing, as the trade war has already imposed a heavy burden on some industries. Bloomberg further analyzed that Beijing's move highlights how some Chinese industries still rely heavily on the United States. For example, all ethane, a raw material used to produce plastics, comes from the U.S. hospitals rely on U.S.-made medical equipment, and airlines need to lease aircraft from third-party companies. According to Reuters, a special task force from China's Ministry of Commerce is compiling a list of exempted products and is encouraging companies to submit applications for U.S. goods that are difficult to replace. Reportedly, the preliminary list includes 131 product categories, such as vaccines, chemicals, and jet engines. Another foreign media outlet reported that Beijing has quietly canceled tariffs on semiconductors. Three import agents in Shenzhen said that when they declared customs on Thursday, the 24th, they found that tariffs on eight types of integrated circuits had been reduced from 125 percent to zero, but memory chips were not included. Shortly after U.S. President Trump revealed that the U.S. and China had begun talks to ease trade tensions, news of tariff relaxation also emerged. However, the Chinese Foreign Ministry responded on Friday, 25th, that it was not clear about the relevant information. The day before, the Chinese Communist Party had claimed that negotiations between the two countries were fake news, a claim that was immediately refuted by Trump, who stated that the two sides had just held a meeting that morning. Chinese consumers rush to buy gold bars for risk hedging, merchants out of stock and require pre-orders to lock in prices. Recently, international gold prices have fluctuated sharply. To mitigate risks, merchants at the Shuibei Jinjin Jewelry Market in Shenzhen have raised their margins, but many consumers are still rushing to buy gold bars as a hedge. On April 22nd, the spot gold price broke through the $3,500 per ounce level, followed by a technical correction. On April 24th, the spot price was $3,333.90 per ounce, and on April 25th, it stood at $3,315.30 per ounce. Gold prices have fluctuated recently, with China's domestic spot price dropping by 50 RMB per gram on April 23rd. At the Shuibei Jinjin Jewelry Market in Shenzhen, many merchants have raised margins for investment gold bars to mitigate risks. Ye Zhuogang, a merchant at Shuibei Gold Exhibition Jewelry Plaza, explained that price drops can lead to contract breaches. For example, a customer who paid a deposit for gold at 830 RMB per gram could face a loss of 30,000 RMB if the price falls below 800 RMB per gram. To reduce this risk, Shuibei now requires a 50,000 RMB deposit for one kilogram of gold. The report noted that beyond price volatility, there is also a shortage of gold bars. At a store specializing in wholesale investment gold in Shuibei, many gold bars on display had already sold out. There are lots of people queuing in the showroom now. I waited for two hours just to get this small batch of goods, said Mr. Zhu, a gold buyer. Mr. Xiao, another buyer, said that it's currently difficult to secure gold materials, and even placing an order in advance doesn't guarantee availability. We had to order two days ago, and only received the goods today. We actually run a jewelry business, but our customers now believe gold bars are more valuable, so more people are choosing them. On April 24th, the prices of gold jewelry from several mainland brands also began to fall. As of 11 a.m. that day, Chow Sang Sang's gold jewelry was priced at 1,031 Renminbi per gram, down 49 Renminbi from the April 22nd price of 1,080 Renminbi per gram. Chow Tai Fook, Chow Sang Sang, Luk Fook and other brands were pricing their gold at 1,038 RMB per gram, a drop of 44 RMB from the 1,082 RMB per gram price on the 22nd. According to Red Star News, as of 8 p.m. on April 23rd, the gold price in Shenzhen's Shuibei market had dropped from 837 RMB per gram the previous day to 796 RMB per gram, a decline of over 40 RMB. Some merchants said that after prices dropped, previously quiet shops began to see long queues, and heavy gold bars were out of stock and had to be reserved in advance. Currently, gold bars are the best-selling product, and factories are working overnight to fulfill demand. Many merchants in Shuibei said there are currently no gold bars in stock, and new orders take between one to seven days. To cope with price fluctuation risks, some have increased the required margin to 20 to 30 percent of the purchase amount. Another Shuibei merchant cautioned that the volatility in gold prices has made some people hesitant. But if you don't urgently need money, it's not recommended to sell your gold hastily. Currently, the international gold market is being influenced by multiple factors, and prices continue to fluctuate at high levels. Experts warn that while gold is a safe-haven asset, investors should carefully assess risks and avoid blindly chasing highs and selling lows. As the U.S.-China trade war continues to heat up, high tariffs have caused Sino-U.S. trade to come to a virtual standstill, and China's foreign trade manufacturing industry is facing unprecedented difficulties. Some experts said that this incident is not isolated, but marks the beginning of the structural contraction of China's manufacturing industry. As the U.S.-China tariff war continues to escalate, high tariffs and shrinking global demand are forming a double attack on small and medium-sized private enterprises, and the manufacturing industry is in a crisis of silent collapse. This is the most terrifying. This hidden crisis is difficult to prevent, but it may continue to spread in the real economy. The U.S.-China tariff war escalates, and Dongguan's large factory stops production. As one of the birthplaces of China's global OEM model, Dongguan Guangdong has long been known for its labor-intensive industries and export-oriented economy. The company was established in 2007 and focuses on the research, development, manufacturing, and sales of household appliances. One hundred percent of its products are sold to the European and American markets. According to reports from mainland media such as NetEase and Sohu, Dehong Electric said in a notice that business may resume after customers renegotiate with downstream companies. But the current situation has put the company in trouble. This incident reflects the survival crisis of China's foreign trade manufacturing industry under the heavy pressure of the tariff war. If even a large factory like Dongguan can't hold on, it means that China's manufacturing industry is shrinking. David Wong told The Epoch Times that in the past, Made in China symbolized low cost and high efficiency. But now, under the pressure of high tariffs and falling demand, this model is gradually shrinking inward. Since the U.S.-China tariff war broke out, private factories and businesses across China have been shutting down in large numbers. As overseas orders vanished and production costs soared, many small and medium-sized enterprises could no longer survive. Waves of layoffs followed, leaving countless workers unemployed and uncertain about their future. The once-bustling manufacturing zones are now filled with silence and shuttered gates. A quiet but devastating collapse spreading across the country. The escalation of the U.S.-China trade war not only affects a single company, but also affects the important foreign trade towns on China's southeast coast. Millions of foreign trade factories in Zhejiang, Jiangsu, Guangdong, and other places are facing a collective holiday wave due to the near-zero orders from the United States. As China's May Day holiday approaches, the phenomenon of factory shutdowns and suspension of air and sea routes may intensify. Analysis points out that if the United States and China cannot quickly return to the negotiating table, and the tariff war continues to worsen, China's foreign trade manufacturing industry will face a greater impact. Industry insiders are worried that long-term trade frictions may reshape the global supply chain pattern, and Chinese foreign trade companies need to accelerate transformation to meet the challenges. At present, some companies are trying to explore emerging markets or adjust their product structure, but it is difficult to make up for the losses caused by the shrinking European and American markets in the short term. The subsequent direction of the U.S.-China trade war will have a profound impact on the stability of the global economy and industrial chain. Expert This silent fall is the most terrifying, like a virus spreading. Regarding whether there will be more factory closures in the future, David Huang believes that it is better to say that it is a collapse one after another, rather than a closure wave. He explained that many factories did not officially go bankrupt, but chose to stop production, lay off employees, or start work at a low frequency, entering a half-dead state. This phenomenon is often overlooked in official statistics because companies may still retain their registration and house numbers, but have already laid off a large number of employees or stopped working. This silent collapse is the most terrifying, like a silent virus spreading. David Huang warned that this hidden crisis lacks obvious signals and is difficult to prevent, but it may continue to spread in the real economy. Small and medium-sized private enterprises are particularly vulnerable, and under the dual pressure of high tariffs and shrinking domestic demand, they have almost no way out. The three lifelines of China's economy. David Huang pointed out in an interview that China's economy currently relies on three pillars to cope with external pressure. Real estate market. Although China's real estate industry is in deep crisis, with property market transaction volume and housing prices continuing to decline, some projects still bring limited cash flow. Local governments are barely able to maintain operations through land transfers and debt restructuring. Local debt extension. Local government debt is huge, and interest payment pressure is increasing. David Huang said that China has postponed debt repayment pressure to the future through debt extension in exchange for short-term stability. However, this strategy may accumulate greater risks. Export adjustment. As the demand for high-value-added products in the U.S. market has dropped sharply, China has turned to increase exports to low-value-added markets in Asia and Africa while seeking to expand trade with Europe. However, French Prime Minister François Bayrou recently said that communist China cannot replace the United States. David Huang emphasized that China's political and economic system provides it with short-term stress resistance. Unlike Western elected governments, China's centralized system can quickly allocate resources, its banking and financial systems are highly controlled, and its policy implementation is strong. In addition, information closure has limited the domestic public's understanding of the external environment to a certain extent, reducing the risk of social unrest. However, he warned that the fundamental problem of China's economy lies in endogenous defects, insufficient innovation capabilities, institutional rigidity, and policy directional deviations have led to a gradual decline in economic vitality. The national system is efficient in certain circumstances, but it is also prone to directional errors and is difficult to self-correct, said David Huang. U.S.-China Tariff War. From Trade Disputes to Conflicts of Values. Since the outbreak of the U.S.-China Tariff War in 2018, there has been no sign of easing. David Huang believes that this conflict has gone beyond the scope of traditional trade disputes and has evolved into a comprehensive collision of two value systems economic models and legal systems. The global supply chain has also moved from integration to separate governance. The goal of the United States is not only to impose tariffs, but also to build a new supply chain system based on universal values and a common legal framework. The United States is not seeking simple negotiations, but aims to reshape the global economic and political structure, David Huang analyzed. Whether the U.S. leader is Trump or Biden, the core goal of the tariff policy toward China is the same, requiring the Chinese Communist Party to follow internationally accepted values and rules. Otherwise, it may face marginalization. The only difference is that Biden tends to unite allies to exert pressure together, while Trump is more inclined to unilateralism and strongly demands that other countries take sides. The future of China's manufacturing industry. Challenges and solutions. In the face of the long-term trend of the U.S.-China tariff war, what is the way out for China's manufacturing industry? David Huang pointed out that small and medium-sized private enterprises need to accelerate transformation and explore opportunities in the domestic demand market or emerging markets. However, high tariffs, supply chain reconstruction, and global economic uncertainty make this transformation challenging. The suspension of production at Dongguan's large factories is just the tip of the iceberg. If they cannot respond effectively, more companies may face the dilemma of silent collapse. The continued escalation of the U.S.-China tariff war has brought unprecedented challenges to the Chinese economy. Faced with the multiple pressures of shrinking export markets, weak domestic demand, and the hollowing out of industries, China needs to find a balance between economic reform and political stability. However, as David Huang said, the inherent contradictions of the CCP system may make this transformation process full of uncertainty. In the future, whether the Chinese economy can successfully cope with the impact of the tariff war remains to be seen.