> and destroy any organized labor
Hilariously not any organized labor, just the local group. The largest organized labor group in the history of the world is alive and well, and is headquartered in Beijing.
This was basically just a case of kicking the can down the road really hard. The can is still there, waiting for you, and you are now completely dependent on it (oh and it has nuclear weapons).
Independent labor unions are illegal in China. Are you referring to the ACFTU? That is about as much a labor union as is the 'peoples' republic of china is run by the people. The ACFTU is primarily concerned with industrial output matching state targets and not particularly concerned with worker welfare.