China

Consumer prices have fallen in China for the first time in almost two years, exports are down, and rumor has it that one of the country's top private property developers is experiencing a liquidity issue. According to interviews with experts conducted by ThePrint, the causes range from previous governmental mistakes to rising debt levels, low consumer confidence, a faltering real estate market, and a continuing trade war with the United States. According to Sriparna Pathak, an associate professor of Chinese studies at O.P. Jindal Global University, falling consumer spending has pushed China's economy into deflation as consumers lose faith in the country's economic future. With economic optimism low, consumers choose to put money aside in case of need. She said, "There are many re...

President Xi Jinping’s message to Chinese people everywhere is crisp: “tell China’s story well.” All organs of the Communist Party of China (CPC) have been harnessed not only in pursuit of the ‘Chinese Dream of National Rejuvenation’ but to also persuade the greatest possible number, both at home and abroad, that this virtuous goal is almost within Beijing’s grasp. In June 2023 alone, four major international forums were held in China to roll out the government’s vision for global human rights governance, promoting China’s cultural strengths, making the CPC more likeable, and for world peace. It should, therefore, strike a dissonant chord to read increasing reports about Chinese citizens, of all social classes and wealth levels, leaving China permanently for foreign countries. ...

As the world’s second-largest economy, China has seen some high growth in recent past. With this growth, however, has come a widening gap between the rich and the poor. China’s income distribution statistics show that the country is facing a large income gap between the rich and the poor. China’s Gini coefficient has grown sharply to 0.466 points in 2021, which is above the warning level set by the United Nations of 0.4. By comparison, countries such as Germany, Canada, and Japan all have estimated Gini coefficients that hover at just over 0.3. There is also a significant income gap between urban and rural households, as well as between different provinces in China. Beijing and Shanghai had a 2021 per capita income which was 227% of the average national per capita income of $12,551. At...

Last month, China’s central bank cut short-term interest rates to 1.9% from 2%--the first rate cut since August 2022. There is a hint that Chinese authorities may introduce a bigger monetary stimulus package to revive the economy. With exports falling by 12.4 %, home sales tumbling, factory activity struggling to gather pace and unemployment rate among youth crossing all past records to touch 20.8% in May, the Chinese economy is sputtering on all major fronts. Accentuating woes of Chinese people is unfavourable news on the foreign investment front. According to Nikkei Asia, China could corner just $42.5 billion FDI between July and December 2022, constituting a 73% decline on the year. In 2023, despite making all efforts to woo investors, China was able to receive $39.71 billion worth of ...

In the face of an unprecedented unemployment crisis, China has turned to the revival of the street-stall economy as a potential solution. Megacities like Beijing and Shanghai are relaxing regulations to allow street vendors to operate in more public areas, signalling a shift in the government's approach to combating the alarming situation. Since the post-COVID era began, the Chinese economy has struggled to regain its pre-pandemic strength, resulting in a sharp rise in youth unemployment. Even college graduates cannot secure stable employment, exacerbating the issue further. State authorities have drawn parallels between the current plight of unemployed graduates and the characters from Kyong Yiji literature, urging them to "take off the long gown" and embrace entrepreneurship by se...

China is getting its millions of communist cadres ready and re-oriented for its new market philosophy—In China, for China. A comprehensive program, which basically teaches total acquiescence to the party leadership, is being implemented to strip cadres of any element of doubt or lack of clarity about the new, insular strategy. On the face of it, the strategy, that China claims is different from in China to service the world market approach, is about “the high-quality development of China's economy, carry out in-depth cooperation in the global industrial and supply chains, and work together to address global challenges such as climate change and build mutually beneficial partnerships.” The Chinese leadership contends for a new strategy to succeed, the army of workers must be of one m...

China is a mute witness to foreign investors buying property on its mainland as the country faces a foreclosure of properties because of thousands of defaults by developers on account of a government crackdown on speculation and a slowing economy. Apart from the crackdown and the economic slowdown, the developers’ market also floundered because of protests by homeowners against stalled construction projects and threats of mortgage boycotts. Singapore is leading the buying the spree. According to media reports, sales of Chinese distressed properties, including office buildings and factories, hit a quarterly record of $1.93 billion in the last three months of 2022, according to MSCI, an American finance company, up 14% from the same period a year earlier and 73% higher than in 2019, t...

China's economic challenges have reached a critical point, with youth unemployment soaring and the country's economy in a state of stagnation. The government, led by President Xi Jinping, is resorting to rhetoric reminiscent of the Cultural Revolution to address the issue. This article delves into the current state of China's economy, the struggles faced by its youth, and the potential consequences for the nation's future. Furthermore, it explores the need for a paradigm shift towards democracy and a market-driven economy that empowers its citizens. China's youth unemployment crisis is alarming, with over 20 percent of 16-to-24-year-olds unable to secure employment. President Xi Jinping's response to this predicament, urging college graduates to "eat bitterness" and endure self-inflict...