China

The rising unemployment in China has sparked changes in the youth behaviour in the country such as growing inclination toward religion, preferences to staying with parents and indulging in betting and gambling, which do not appear in conformity with the values and ideology of the ruling China Communist Party (CCP). The Chinese youth has started flocking to temples to pray for luck amidst diminishing employment opportunities in China, which has been stuck by dual problems of sluggish post-Covid-pandemic economic recovery and real estate fuelled slowdown. According to research conducted by the Chinese travel company Qunar, the visits by young worshippers to Yonghe Temple, which is popular for seeking blessings for career and financial success, have seen a sharp increase. It recorded 5...

The ongoing real estate crisis in China is set to affect economic growth and it has already started hurting the average Chinese population. They are incurring huge losses due to loan repayments and non-payment to workers and small businessmen by property giants. China, where protests are a rare sight, is seeing distressed homebuyers and investors agitating at government offices.12 The middle-class population in China has refused to pay loans on unfinished homes that are a result of a decade-long real estate bubble. Homeowners in Hunan Province said their lives have become "extremely difficult" and they could not afford the monthly mortgage. “We have to take risks out of desperation and follow the path of a mortgage strike,” they wrote to the local officials.3 Zhongrong International...

Throughout the 1980s, Japan’s economy was the envy of the world. But by 1989 a real estate and stock market bubble spooked policymakers, who hiked interest rates to tame inflation. Japan’s bourse tanked, the value of assets plummeted, and several big banks either failed or required government bailouts. As businesses folded and joblessness rose, Japan became mired in a decade-long recession. There are distinct parallels for China’s economic downturn today, which in many ways is typical of any credit-driven boom and bust cycle. China’s housing market—which contributes some 30% of GDP—is the chief villain. Despite a shrinking population, Chinese developers gorged on debt to build more new homes every year than the U.S. and Europe combined. Today, China has more than 23 million unsold apar...

In yet another move in a series of steps taken to boost fertility rates in China, a county in the country is offering couples a reward of 1,000 yuan (USD 137), if the bride is aged 25 years or younger. The minimum legal age for marriage in China is 22 years for men and 20 years for women. The notice in this regard was published on Changshan county’s official Wechat account earlier in August, stating that the reward was to promote “age-appropriate marriage and childbearing” for first marriages. One of the parties, however, must have their household registration in Changshan to qualify for the reward. The notice also mentioned other subsidies, including 5,000 yuan (USD 688) and 10,000 yuan (USD 1,377) each year for second and third children born in the county up until the age of three an...

The Chinese Communist Party recently pledged to boost workers ’incomes and revive household consumption, but this policy goal is facing a massive complication - the country’s slowing economy. To grapple with the issue, China’s top graft-busting watchdog vowed to eliminate “Western-style hedonism” in the $57 trillion financial sector. The result has been troublesome. To deal with the fund shortage, financial firms and regulators have cut salaries and bonuses of their employees. Some hospitals, schools and private businesses have also followed suit. But this time, many Chinese are facing a new source of economic hardship – steep cuts in salaries of the country’s millions of civil servants. For instance, in the city of Suzhou, popular for its prosperity, the year-end bonuses of public ...

Despite China's proximity to Sri Lanka, unlike Pakistan, Beijing sat on the sidelines while Colombo's economy collapsed last year, giving New Delhi an advantageous position. Beijing and Colombo's longstanding political and economic connections have grown closer in recent years because to China's remarkable development. Despite its physical separation from the Indian subcontinent, China has been using its vast financial resources to challenge India's regional dominance. Leaving the door open for New Delhi when Colombo had its first sovereign default in April 2022 was a perplexing decision. Debt relief was another area it avoided. Because of its location and ability to control shipping routes, Sri Lanka was formerly considered a potential "Singapore of the East," a reference to China's "Mal...