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China faces fresh wave of labour unrest amid economic slowdown and factory restructuring

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Beijing | May 30, 2026 6:24:04 PM IST
Labour unrest is emerging as a growing challenge in China's manufacturing sector, with workers at two major factories staging protests over layoffs, wage disputes, and compensation concerns, according to a report by The Epoch Times.

According to the report, around 600 workers at an electronics plant in Dalian, Liaoning Province, launched a strike and protest march on May 22. The factory, formerly operated by Japan-based ROHM Semiconductor, is being transferred to a Chinese owner, prompting concerns among employees about their future benefits and employment status.

The Epoch Times reported that workers fear that years of service accumulated under the Japanese-owned company may not be fully recognised after the ownership transfer. Protesters have demanded compensation in line with China's labour laws and existing employment protections. Videos shared online showed workers in yellow uniforms marching through an industrial area near the factory.

The Epoch Times reported that ROHM Semiconductor announced on May 12 that it would transfer its wholly owned subsidiary, ROHM Electronics Dalian Co. Ltd., to Dalian Pengcheng Group, a Chinese company. Labour rights advocates cited by The Epoch Times said disputes of this nature are common when foreign-owned factories are sold or restructured.

In a separate incident, workers at electric vehicle manufacturer Aima Technology Group in Zhejiang Province halted production on May 26, alleging wage deductions and excessive working hours. Employees claimed they worked up to 13 hours a day in April while receiving take-home pay of just over 5,000 yuan (USD 738), with some reporting deductions exceeding 1,000 yuan (USD 148). Neither local authorities nor the company had publicly responded to the allegations at the time of reporting, The Epoch Times noted.

Labour advocates stated that workers often turn to protests only after formal complaints fail to produce results. According to The Epoch Times, experts believe rising operational risks and geopolitical uncertainties are also prompting some foreign companies to reconsider their long-term presence in China, further contributing to uncertainty among workers. (ANI)

 
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