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China sees surge in worker protests over unpaid wages amid deepening local government debt crisis

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Beijing | May 22, 2025 1:44:12 PM IST
Protests have started among Chinese construction workers, teachers, and factory staff who are demanding overdue wages, as public frustration grows over the effects of tightening local government budgets, according to a report from Radio Free Asia (RFA).

Workers across China, from the northern province of Hebei to the southern autonomous region of Guangxi, which borders Vietnam, and eastward to the coastal province of Guangdong, are bearing the brunt of cash-strapped local governments seeking survival strategies during the economic downturn.

The village committee of Pingtang in Gushan Town, located in the eastern province of Zhejiang, announced plans to collect "sanitation management fees" and "parking fees" from all residents starting May 10. Those who do not pay on time will face additional charges and have their vehicles clamped starting June 1, as detailed in the RFA report.

Last November, China's Ministry of Finance revealed new measures amounting to 10 trillion yuan (approximately USD 1.38 trillion) intended to assist local governments grappling with increasing debt due to a downturn in the property market, which has severely affected one of their primary revenue sources land transaction sales, according to the RFA report.

Although protests by workers and labor disputes are not rare in China, social media indicates a rise in protests among fields such as education, healthcare, and sanitation. This development contributes to a growing discontent with the overall economic climate. Retail sales growth and industrial production decelerated in April. Additionally, US tariffs on Chinese goods came into effect in March and rose to 145 per cent in April, negatively impacting shipments and export activities, as per the RFA report.

Several teachers with contractual roles in the city of Zaozhuang, located in the southern province of Shandong, reported that they have not received their salaries for six months, according to the highlights from the RFA report. (ANI)

 
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