BEIJING – With the Lunar New Year close, China saw a sharp jump in protests tied to unpaid wages. Across the country, workers blocked roads, sat in at offices, and surrounded job sites to demand overdue pay. In the most troubling cases, some people turned to self-harm or violence after months of waiting.
China often sees a pre-holiday rush to collect wages. This year felt different because the targets weren’t only private factories. State-owned enterprises (SOEs) and public sector jobs, long viewed as safe “iron rice bowl” roles, also faced missed or delayed payments. The unrest points to deeper economic stress, including tight local government finances that have slowed payrolls and raised social tensions.
Protests Spread Across the Country
Posts shared on social media, along with reports from citizen journalists and overseas labor monitors, described hundreds of wage protests in January and early February 2026. Activity climbed as the holiday neared. Many workers shouted, “Return our blood-and-sweat money,” while blocking factory gates, company entrances, and even government buildings.
- In Shandong, workers at the Wuhu Shipyard in Weihai City gathered outside the site on February 12, asking for three months of unpaid wages.
- At construction projects, workers took bold steps. In Guangzhou and Cangzhou, Hebei, groups blocked entrances with vehicles, pressing contractors linked to major SOEs such as China State Construction Engineering Corporation.
- In Shanghai’s Zhujiajiao Township, laborers confronted local officials over wage arrears tied to Shanghai Baoye Group, a state-affiliated company.
- Essential services also joined in. Sanitation workers in Xi’an and bus employees in Puyang displayed protest signs on vehicles.
The anger didn’t stop with manual labor jobs. Public sector staff, including some civil servants, reported pay cuts, late bonuses, and uneven wage payments. In parts of Zhejiang and Shandong, some officials said their income dropped by 30% or more, with wages arriving late or short.
Groups such as China Labor Watch recorded many incidents from December 2025 through February 2026. In addition, some Chinese workers on overseas projects staged road blockades in Cambodia, showing how frustrations at home spilled beyond China’s borders.
Construction Takes the Biggest Hit
Construction has struggled with wage disputes for years because subcontracting chains can hide responsibility. Now, the long property slump and slower infrastructure spending have left builders short on cash.
Reports said Beijing’s largest state-owned construction firm paused work for about 30,000 employees as the building boom faded. Meanwhile, protests at sites tied to China Construction Seventh Engineering Division and other units included sit-ins and blockades.
For migrant workers, timing made the problem worse. Many count on year-end lump-sum payments to travel home and support their families. Instead, some said they received only small advances during the year, and nothing when it mattered most.
Several incidents showed how desperate people felt:
- Some workers threatened or attempted suicide by jumping from rooftops or buildings.
- A few cases involved retaliation, including arson linked to small unpaid debts.
- One report described a factory set on fire over about $50 owed.
These actions also reflect a breakdown in normal dispute channels. Labor arbitration and court cases can take months, so workers often can’t get help before the holiday.
Healthcare and Transport Workers Join In
Wage delays spread into services people rely on every day. Staff at underfunded healthcare facilities reported late or missing paychecks. Transport workers, including bus drivers and sanitation crews, faced similar problems.
In Xi’an, sanitation workers said they went unpaid for months, and some blocked roads to force attention. In Henan, bus company employees protested by placing banners on buses. Because these jobs often depend on local government budgets, shrinking revenue quickly turns into missed pay.
SOEs and Civil Servants Feel the Squeeze Too
For decades, SOEs and government jobs signaled stability. In 2026, that sense of security weakened. Some large, party-controlled enterprises reportedly held back wages, which shocked workers who expected reliable pay.
At the same time, civil servants in several provinces described bonus cuts of up to 30%, along with delayed wages. Many young people turned to “iron rice bowl” jobs as private firms struggled, only to meet austerity once inside.
Local officials also faced a difficult reality. They managed rising migrant worker protests, even while their own paychecks became less predictable.
Why It’s Happening: Local Budgets Under Strain
A central issue is China’s fiscal mismatch. Local governments handle much of the spending, including salaries, yet many carry heavy debt from years of infrastructure borrowing. They also lost a major income source as land sales slowed.
Beijing sends transfers to help. Still, hidden debt, weaker growth, and falling revenue have tightened the system. Some short-term fixes, like court-led wage collection drives and new bond sales, can offer relief. Even so, the same wage arrears keep returning.
Other pressures add to the problem. The property downturn, factory closures tied to trade tensions (including U.S. tariffs), and deflation worries have all weighed on employers. Reports also said labor disputes rose sharply from 2023 to 2025, with unpaid wages among the top causes.
Officials have promised fiscal support in 2026, including steps aimed at easing local debt. Critics say the plans won’t be enough without broader changes.
Police Crackdowns and Rising Tension
Police moved quickly to break up some gatherings, especially in places like Shandong, as authorities pushed to preserve “stability” before the holiday. Yet force doesn’t solve the unpaid wages that triggered the protests.
Across China, workers tried different tactics, from coordinated blockades to public stunts meant to draw attention. That mix suggests people feel bolder, even with real risks. If wage arrears continue, public trust could weaken, and pressure on local governance could rise.
What It Means for China’s Economy
This wage crisis signals deeper economic problems, including reliance on debt-driven growth and the long fallout from the property slump. Migrant workers, who power city construction and service jobs, have taken some of the hardest hits. As a result, consumer spending may soften, and rural families could see fewer remittances.
Some analysts warn that if wages stay low or go unpaid, deflation pressures could worsen. Lunar New Year, normally a time for reunions and spending, became a flashpoint because many families lacked cash.
For 2026, solving wage arrears will take more than quick fixes. Without stronger fiscal reforms and a healthier economy, the same protests may return each holiday season. The message from workers is simple and urgent: the financial strain is spreading, and patience is running out.
