U.S.–China Trade War Reignites: Beijing Reels, Trade Collapses Across the Board

U.S.-China trade war reignites. Trump slaps 100% tariffs on Chinese goods, Beijing reels. Trump hints at crisis in CCP regime, counting down to Xi's resignation. Shock in New York's Chinese community. Prominent Chinese leader arrested by ICE. Sparking panic among CCP spies. Shanghai in crisis. Housing market collapses overnight, leading nationwide downturn. Homeowners panic, slashing prices and rushing to sell. Falsifying the 14th five-year plan. Xi Jinping's desperate struggle. Ahead of the fourth plenary session. The CCP is stunned. Censoring news of Yu Menglong's death triggers a three-withdrawals uprising. You're watching Decoding China, where we bring you timely analysis and grounded perspectives on today's China. U.S.-China trade war reignites. Trump slaps 100% tariffs on Chinese goods, Beijing reels. President Trump plans to impose tariffs exceeding 100% once again. A move described as a devastating blow. For those involved in trade with the United States, the coming months are expected to be extremely difficult. Many Chinese traders say they had major business plans underway, but everything has now been thrown into chaos following the latest announcement from Washington. The overall sentiment is one of anxiety and uncertainty as the U.S.-China trade war reignites. With even greater intensity. On October 11th, a Chinese cross-border e-commerce seller said he could only smile bitterly after hearing that the United States would impose a 100% tariff on Chinese goods. As the trade truce between the two countries nears expiration, U.S. President Donald Trump and Chinese Communist Party General Secretary Xi Jinping were expected to meet at the upcoming APEC summit in South Korea. However, just two days earlier, China suddenly announced expanded export controls on rare earth elements and other strategic materials, citing national security concerns. In response, Trump swiftly imposed a 100% tariff on Chinese imports and tightened export controls on key U.S. software technologies. In a fiery post on Truth Social, Trump accused Beijing of committing a moral disgrace, describing China's trade stance as extraordinarily aggressive. Many analysts have called this an unprecedented escalation that could send U.S.-China relations into a downward spiral. At the same time, Beijing launched an antitrust investigation targeting U.S. semiconductor giant Qualcomm and announced new port fees for ships flying the U.S. flag or operated by American companies. In retaliation, the U.S. Trade Representative's Office announced a 100% tariff on cranes and cargo handling equipment made in China. Trump also hinted that he might cancel his planned meeting with Xi at APEC, saying there no longer seems to be any reason to do so. Experts across the Asia-Pacific region believe Beijing is trying to assert strength ahead of the Chinese Communist Party's fourth plenary session. Shenming Shi, a researcher at Taiwan's Institute for National Defense and Security Research, said China's leadership appears to have reached an internal consensus to take a tougher stance toward Washington. He noted that Beijing's approach — opening exports when it wishes and closing them when it doesn't — uses rare earths as a bargaining chip and has severely damaged trust with the United States. Other analysts warned that the U.S. response will further harm China's already weakened economy. They said that if neither side compromises, tariffs could rise even higher, and ultimately, the side that endures longer will win. Under China's Stability Maintenance System, the regime can tolerate public hardship if it means preserving political control, experts said. Craig Singleton of the Foundation for Defense of Democracies argued that Beijing's decision to expand export controls was a major miscalculation, since Trump sees it as betrayal, not leverage. U.S. analysts added that Washington still holds numerous retaliatory tools, from restricting access to key software and cloud technologies to expanding export controls on any product containing U.S. components. If Beijing extends licensing to 14-nanometer chips, the U.S. could respond in kind, requiring approval for all related exports — a move that could shake China's entire industrial supply chain. Meanwhile, domestic troubles are mounting inside China. According to a report by the Epoch Times, a local finance official using the pseudonym Yang Qing revealed that many provincial governments are facing a severe fiscal crisis. After three years of COVID-19, public funds have been depleted, and in the past two years, multiple problems have surfaced. Since late July, local governments have suspended funding for key public services, such as urban waste management, government vehicle operations, and police equipment purchases. Public sector salaries have been cut under various pretexts, and many regions are surviving on continuous borrowing. Yang warned that when a government faces a fiscal crisis, it signals that society is sliding toward disorder. He argued that China's previous rapid economic growth was unsustainable, achieved by sacrificing public well-being for the Communist Party's massive profits. Now, with revenue drying up, authorities are squeezing citizens through taxes and fees. Once the debt burden exceeds manageable limits, Yang said, collapse will only be a matter of time. He predicted that Beijing may continue cutting wages for local and village-level officials, redirecting funds toward surveillance, and increased military spending to maintain control. China's economic situation is clearly deteriorating, and 2026 will certainly be harder than 2025, he said. Yang also advised Chinese citizens not to keep all their savings in banks, warning that the yuan is losing value and could eventually become worthless. He recommended converting part of their savings into U.S. dollars and keeping cash at home, a precaution, he said, in case of a collapse similar to the Soviet Union's. While Chinese state media continues to insist that the country's economy remains strong and resilient, unease is spreading online. Under a video about Trump's new tariffs, one commenter wrote, Should we buy gold? Another replied, No wonder gold prices are soaring. Ordinary people are always the last to know. Many observers note that this simple exchange captures the mood of Chinese society. Anxious, uncertain, and bracing for impact as the trade war returns in full force. Trump hints at crisis in CCP regime, counting down to Xi's resignation. On October 12th at noon Eastern time, President Donald Trump posted a statement claiming that Xi Jinping was in a very bad mood, and added, America wants to help China, not hurt it. Why did Trump suddenly claim Xi was in a bad mood? Some analyses suggest this indicates that U.S. intelligence has detected a major crisis in Xi's grip on power. On October 7th, Cornell University Law PhD Gordon Chang appeared on Fox News, suggesting that Xi might lose his position as general secretary or chairman of the Central Military Commission at the Fourth Plenum. Analysts suggest that the U.S. has been closely monitoring Beijing's political situation. Earlier, multiple U.S. officials and mainstream media outlets reported signs of an impending power transition for Xi. U.S. intelligence agencies continuously track Jiang Nanhai's political dynamics to ensure that their counterparts in trade negotiations hold genuine authority. Trump's pointed remark that Xi is in a very bad mood carries layers of meaning. What is currently troubling Xi is likely the threat to his power, or even a crisis that could lead to his ousting. On October 7th, Fox News invited Gordon Chang, a Cornell University Law PhD, for an analysis on mornings with Maria. Chang noted that Xi has not made high-profile public appearances since September 2025. Combined with U.S. intelligence sources, this suggests that the CCP's Fourth Plenum could be a turning point, where Xi might lose his role as general secretary or chairman of the Central Military Commission. Chang's assessment that Xi's power is in serious jeopardy stems from a statement by U.S. ambassador to China, David Perdue, who indicated that a meeting between Trump and Xi may not occur until next year. Chang infers that Xi might be under house arrest and unable to travel abroad. Alternatively, Xi could be concerned that leaving the country would result in a loss of control over his power. A CNBC report on September 23rd noted that U.S. ambassador to China, David Perdue, stated that the anticipated U.S.-China summit is more likely to take place next year rather than this fall. Chang warned that if Xi loses control at the Fourth Plenum, it could trigger significant geopolitical turmoil. Writer and international political economic commentator, Wang Hao, posted on Facebook on October 11th, stating that as the CCP's Fourth Plenum approaches, Beijing has implemented a series of measures, fully incorporating rare earths, lithium batteries, artificial graphite, and super hard materials equipment into export controls, while simultaneously investigating U.S. companies like NVIDIA and Qualcomm. He believes this is primarily an externalization of domestic political anxiety, using narratives of being besieged and being suppressed to allow Xi to reshape public opinion and intra-party loyalty, reorganizing the system amid a crisis. Secondly, it serves as a preemptive strategy ahead of a potential Trump-Xi summit, leveraging rare earths and the new energy supply chain to pressure the U.S. into concessions during negotiations. Michael Flynn, Trump's first national security advisor during his first presidential term, posted on the X platform in June, pay attention, a power transition is clearly underway in the CCP. China watchers need to closely monitor core CCP members, especially officials in government and national security departments who are losing confidence. He described the consequences of changes in CCP leadership as enormous. Shock in New York's Chinese community, prominent Chinese leader arrested by ICE, sparking panic among CCP spies. Recently, the Chinese community in Brooklyn, New York, was shaken by the news that a well-known female community leader had been arrested by U.S. immigration and customs enforcement, ICE. On October 3rd, Wang Yibing, president of the Taiwan Overseas Chinese Women's Association, was scheduled to attend a mid-autumn festival celebration, but suddenly disappeared. Just days later, photos surfaced on WeChat, showing her being handcuffed by two federal agents in front of her grocery store in Brooklyn. Her pale face and tearful eyes stunned the Chinese community. According to ICE's website, Wang Yibing is detained at the South Louisiana I.C.E. Detention Center and faces potential deportation. Her attorney, Edward J. Kucha, described the situation as chaotic, but noted there was no prior deportation order. She is suspected of ties to Chinese intelligence due to her frequent contact with Chinese consulate officials. Sources indicate that Wang's arrest may stem from a joint ICE-FBI operation targeting Beijing's espionage network. Documented reports show that Wang gained prominence in 2018 by organizing a cultural event tied to China's Belt and Road Initiative, highlighting her connections to the Chinese Communist Party, CCP. Her Taishan Overseas Chinese Women's Association, linked to her hometown, became a key ally of the New York Chinese consulate. With members distributing consular gifts in 2022, according to Fujian Daily, community leaders have described Wang as ambitious, seeking political influence. In 2019, she led a protest against a Taiwanese delegation waving CCP flags, which drew FBI scrutiny. In 2023, FBI agents questioned her for hours about her consulate ties and possible espionage, examining her WeChat messages. By March 2024, agents visited her Brooklyn store, questioning her CCP affiliations and rally activities and alleging espionage. In August 2023, Wang was summoned by the Department of Homeland Security, DHS, for an immigration interview in Manhattan, despite her expired visa. She was asked to transfer her case to the FBI, where agents interrogated her for five hours. Sources say the focus of the investigation was Wang's role in arranging a meeting between Guangdong community leaders and Chinese consular officials in New York. Afterward, immigration officers allowed her to leave and scheduled a court hearing. Fearing legal risks, Wang later married a U.S. citizen and resubmitted her green card application, but she was ultimately arrested by ICE. Immigration lawyer Wang Hu, managing director of Susan Chin Law Firm, explained that under U.S. law, even without criminal charges, ICE may detain individuals if there is evidence of immigration fraud. He noted that ICE recently launched a national campaign called Double Shield, focusing on marriage fraud. Wang's case, he said, may fall under this crackdown. Observers say this is the price of serving the Chinese Communist Party, rejected by her own community and abandoned by Beijing when trouble arises. Her arrest is seen as a wake-up call for overseas Chinese community leaders, still clinging to illusions of patriotism under CCP influence. This case unfolds amid Washington's intensified efforts to monitor Chinese influence operations in the U.S. Once seen as extensions of Beijing's United Front Work Department, many Chinese community associations now face pressure from both sides. Strict U.S. law enforcement on one hand and internal purges from the CCP on the other. Commentator Wang Xia concluded, so-called patriotic community leaders in the U.S. are being pressed by American law enforcement while simultaneously purged by the CCP. After years in America, many have seen the regime's cruelty and now realize the CCP is nearing its end. If they have the courage to distinguish between the party and the nation, they can still choose a different path and a different destiny. Shanghai in crisis? Housing market collapses overnight, leading nationwide downturn. Homeowners panic, slashing prices and rushing to sell. My house was auctioned off by the bank today. Ten years of hard work, all gone. This is how a Shanghai woman began her story in a city once seen as a beacon of prosperity. She explained that a few years ago, when her business was thriving, she borrowed several million yuan, equivalent to hundreds of thousands of U.S. dollars, to purchase a luxury Riverside apartment. But since June last year, her company fell into financial trouble and her monthly mortgage of 12,000 yuan, about 1,650 USD, became unmanageable. Just a few years ago, major cities like Beijing, Shanghai, and Guangzhou were considered immune to real estate downturns. However, over the past two years, that illusion has shattered. Housing sales and prices have plummeted and the once booming property market is now in free fall. In Shanghai, new home transactions in August dropped 27% from the previous month and 45% year on year. The city that once symbolized modern wealth is now leading the national decline, a 20,022. Peking University's survey on Chinese household asset allocation revealed that real estate accounts for over 70% of household assets, with some families exceeding 90%. In July this year, Asia Finance reported that a further 30% drop in housing prices could wipe out over 90% of China's middle class. As layoffs and unemployment spread, more homeowners are being forced to sell. Shanghai property values have already fallen over 35% from their peak, and some experts warn that prices could drop another 50% if the trend continues. One homeowner recalled, a young man from Wenzhou offered 11.3 million yuan, about $1.5 million USD, to buy my apartment for his wedding. I held out for 11.5 million a yuan, so the deal fell through. Now it's worth only 8 million a yuan, a loss of over 3 million. Others share similar nightmares. I bought my house for 3 million yuan. Now it's worth 1.4 million, about $190,000 USD. I lost 1.5 million in three years, another homeowner said. My neighbor bought a similar one for less than 2 million yuan. In just two years, I lost 1 million. Many fear that if prices continue to fall, countless families will collapse under debt. As of June, over 200,000 secondhand homes were listed in Shanghai, with most buyers only interested in bargaining. Those with 10 million yuan, about $1.36 million USD, aim to buy homes worth 15 million, while others demand sellers cut another 2 million before committing. Everyone knows prices may fall further, but the cheaper properties become, the more hesitant buyers are. The downturn extends beyond downtown Shanghai. Suburban towns are also crashing, with old and small apartments on the outskirts setting new record lows. Houses under 1 million yuan, about $136,000 USD, are now common. And some are even below 200,000 yuan, $27,000 USD. It's ironic, one resident said. Those who didn't buy homes are the real winners now, while people like us who worked and borrowed have become the joke. Analysts note that 2025 marks the sharpest property drop in a decade. During China's National Day holiday, housing transactions hit record lows, fewer than 1,000 units sold across Shanghai, averaging less than 100 per day. Faced with these heavy losses, many homeowners have lost hope. Prices have fallen so much that I don't even want to sell anymore. I'm taking my listing down, one woman said. Do you think prices will keep falling? For millions of Chinese families, the dream of homeownership has turned into a nightmare of debt and despair. The collapse of Shanghai's housing market now stands as a stark warning of how fragile China's real estate miracle has become. Falsifying the 14th Five-Year Plan, Xi Jinping's Desperate Struggle. Ahead of the Fourth Plenary Session, the Chinese Communist Party's Fourth Plenary Session is expected to take place this October, amid growing signs of economic distress and a sharp decline in public confidence across China. Observers worldwide are now asking, how will Beijing control and manipulate the flow of information as both domestic and international scrutiny intensifies over its governance crisis shortly after the Politburo finalized the session's date and agenda? The State Council Information Office held a press conference under the theme, High-Quality Completion of the 14th Five-Year Plan. It announced a string of notable achievements across multiple sectors, from housing and social welfare to culture, tourism, finance, technology, and employment. Yet analysts point out that these are largely self-congratulatory claims, with little grounding in measurable reality. The three-year COVID-19 pandemic has severely disrupted the 14th Five-Year Plan 2021-2025. Key targets such as energy consumption, carbon emission intensity, social welfare provision, and real estate reform have all fallen short. Meanwhile, China's GDP growth dropped from 8.4% in 2021 to just 4.5% in 2024, and youth unemployment soared past 21%, an all-time high. Economists warn that the Chinese economy is now trapped in a cycle of property collapse, industrial overcapacity, and capital flight, while Beijing's rigid authoritarian system prevents meaningful policy responses. Demographic decline adds another layer of concern. The number of newborns fell to 6.39 million in 2023, the lowest since the 1960s famine. Marriage rates continue to slide, the labor force is shrinking, and rapid aging threatens long-term economic stability. Even state media have been forced to admit that China's demographic dividend is fading and that low birth and marriage rates will hinder long-term development. One of the most sensitive topics is the actual death toll during the 14th Five-Year Period. Official data claim around 54 million cremations from 2021 to 2025, but independent sources suggest the real figure could be much higher due to manipulation and underreporting. Social media posts and independent reports indicate thousands of sudden deaths among officials, students, and public employees, far exceeding pre-pandemic averages. On the information front, the Cyberspace Administration of China, CAC, reported that in 2024 alone, it handled 1.34 billion social media accounts, meaning every Chinese citizen was, on average, censored or had an account suspended at least once. Such sweeping censorship and account deletions underscore the regime's push to maintain political stability before the plenary session. At the same time, Beijing's propaganda apparatus continues to glorify Xi Jinping economic thought. People's Daily has published an eight-part editorial series extolling the leap forward of China's economy while avoiding mention of widespread business closures, plunging housing prices, or mass unemployment. Some articles even praise the domestic AI system DeepSea. Despite the platform's usage rate collapsing from 50% to just 3%, largely due to over 350,000 banned keywords that cripple its functionality. Analysts believe all of these moves are designed to pave the way for the fourth plenary session, ensuring that Xi Jinping's political dominance remains unchallenged. The 14th Five-Year Plan, once touted as a blueprint for development, has effectively become a political instrument to preserve Xi's power. Once again, the CCP is seen as placing power above truth. Trampling moral integrity in its desperate struggle to maintain control. The CCP is stunned censoring news of Yu Menglong's death triggers a three-withdrawals uprising. Chinese actor Yu Menglong, 37, has been confirmed dead after falling from a building in Beijing. Immediately following the incident, Chinese authorities swiftly blocked all related information and deleted online posts, sparking widespread outrage among fans and netizens. Many began independently investigating the case, searching for evidence and the perpetrator. Based on leaked videos and audio clips, several analysts believe Yu may have been brutally tortured before his death, with the case possibly linked to arms trafficking, violence and organ transplantation. Some sources even suggest that families of senior CCP officials may be involved, drawing intense attention from international media. According to New Talk News in Taiwan, in an October 12th report titled CCP's censorship of Yu Menglong's death backfires fuels a three-withdrawals wave, over 450 million quit the Communist Party, Beijing's information blackout has triggered a backlash. Many Chinese citizens turned to overseas platforms to express dissent, launching a three-withdrawals movement, quitting the Party, the Youth League and the Young Pioneers as a symbolic rejection of the government's narrative. After the incident, Chinese authorities hastily declared the cause of death an accident and quickly closed the case. However, the move failed to quell public anger and instead fueled further suspicion. Online, disturbing videos and audio recordings continued to circulate, depicting scenes of confinement, beatings and coercion. Various conspiracy theories emerged, pointing fingers at actors and producers who were with Yu that night, and even suggesting involvement of high-ranking CCP officials and money-laundering operations within China's entertainment industry. Some Chinese metaphysics experts also noted eerie similarities between Yu Menglong's death and ancient occult rituals, speculating that he may have been chosen as a sacrificial offering in his zodiac year to bless CCP leader Xi Jinping with longevity. According to data from the Global Tuidang Center, an organization founded by the Epoch Times, over 450 million Chinese citizens have formally withdrawn from the Communist Party and its affiliated groups since December 2004. On October 11 alone, more than 40,000 people submitted withdrawal statements. Many cited that they only realized the truth after accessing overseas information and now wish to renounce what they describe as the CCP's deceitful and oppressive system. Notably, the Epoch Times reports that many Chinese nationals applying for U.S. visas, green cards or citizenship now voluntarily present certificates of party withdrawal, issued by the Global Tuidang Center, to demonstrate their complete disassociation from the CCP. The center's chairman, Dr. Wang Jiawan, explained that such certificates serve as supplementary documents that help lawyers and immigration officers better process applications. He emphasized, merely saying you stopped paying party dues or haven't participated for years isn't enough. Without a clear declaration, U.S. authorities will still regard you as a CCP member. Dr. Wang also warned that the U.S. government places great emphasis on truthful disclosure in immigration applications. Any concealment or vague responses could result in severe consequences, including revocation of green cards or deportation. He added that the Tuidang movement is not a political campaign, but a moral choice, representing repentance, rejection of evil, and a promise for a better future. Reverend Jiang Yan, a former Tiananmen student leader now living in the United States, echoed that sentiment. Withdrawing from the CCP is not about political struggle or power. It is about the purification of the soul. It marks the beginning of a new China, one built on freedom, faith, and morality. He noted that even after more than three decades since Tiananmen, the Chinese people are now closer than ever to a future free from communism, as millions begin to awaken and choose to leave the CCP behind. Your feedback matters. Share your views in the comments. If this content resonated with you, we invite you to share it with your network. Your continued support empowers us to pursue independent, high-quality journalism. Subscribe and like to stay up to date with Decoding China. Thank you for watching.