China's Silent Crisis: Tariffs, Purges, and the Disappearing Public
Disappearing high-level officials join a shrinking Chinese economy, plummeting births, empty streets, and other concerns, deeply unsettling China's public.
"This morning, it felt like the sky had fallen!" This is how many Chinese small and medium-sized business owners lamented after US President Donald Trump announced the "Liberation Day" tariffs. What do Trump's latest tariff policies truly mean for China's economy and the Chinese Communist regime?
What does the latest political turbulence in China imply for Xi Jinping? And why are Chinese citizens suddenly exclaiming, "Where have all the Chinese people gone?"
US Tariffs Strike a Heavy Blow
On April 2, US tariffs on Chinese goods surged to 54%. Some argue that if previously implemented tariffs of 20% are included, the actual tariff burden reaches as high as 74%.
This does not even include additional tariffs: 25% on steel and aluminum, 100% on automobiles, and docking fees at US ports.
In addition, a new 30% or $25 per item tariff on Chinese goods under $800 entering the US via the international postal system deals a major blow to China's cross-border e-commerce platforms like Temu and Shein.
China's economy is famously driven by the so-called "three carriages": infrastructure (government spending), domestic demand, and exports. The first two have long lost momentum. And now, with exports taking such a hit, the economic outlook appears increasingly grim.
The End of a Growth Model
Since China joined the World Trade Organization in 2001, it has taken full advantage of American openness, along with unethical tactics such as technology theft. With those, it has built itself into the world's second-largest economy. Now, that model has reached a dead end.
Looking ahead, it is highly likely that the Chinese Communist Party (CCP) will turn further inward, closing off from the world and becoming a second North Korea. Whether the economy collapses or people's lives worsen is irrelevant to the CCP. Even if the economy deteriorates, it does not affect the consumption level of the CCP's top echelon.
4/7/2025
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