It all stems from their Zero covid policy, they are the only country still perusing it, to the absolute detriment and destruction of everything else it seems. With how fast Omicron spreads, zero-covid is simply untenable these days but China is trying...
The basic report is that people are starving. The government has provided food but the food situation is almost crazier than the lockdown, group buys, crackdowns, the whole works. The most recent reports I've read is that the govt is cracking down on any "non-government" assistance, so if you are caught trying to acquire food outside of the government system, the police throw it all out (couldn't find news reports about this but there is plenty on TikTok).
There are tons of other angles, if the government finds out one person in your complex has tested positive, everyone gets taken away to a "recovery center". Lots of videos of people absolutely loosing it, there was reports of a bunch of suicides at a local university, shit just gets crazier the more you read about it[1].
It's an entirely baffling situation, because zero-covid just isn't coming, it's now how this virus works anymore. Some outlets have tossed around the idea that another revolution will occur over this, and while that would be extreme, looking at the situation, I wouldn't rule it out.
[1]: https://nypost.com/2022/04/30/nyu-prof-says-shanghai-campus-...