Alexander Sammon
Updated on: October 16, 2024 11:27 am GMT
As China celebrates 75 years since the founding of the People’s Republic, the atmosphere is not as festive as one might expect. Despite the country’s stock market showing signs of growth, many citizens are grappling with economic challenges and uncertainty about the future.
Celebrating a Milestone Amid Challenges
On October 1st, 2024, China marked the 75th anniversary of Communist rule with elaborate decorations and celebrations. Workers erected a significant 18-meter tall structure in Tiananmen Square, showcasing a vibrant design of fruits and flowers, particularly peaches and gourds. These are traditional symbols of longevity in Chinese culture. However, behind this colorful façade, leaders like Xi Jinping are burdened with concerns about their party’s stability and the nation’s economic future.
Economic Struggles in Modern China
Over the past year, China has faced considerable economic woes. Since its reopening after the Covid-19 pandemic, the country has seen rising unemployment and financial distress among its middle class. Some of the significant issues include:
- Young graduates are finding it hard to get jobs.
- White-collar workers face pay cuts and layoffs.
- Entrepreneurs struggle with financing their businesses.
- Middle-class families are losing wealth as housing prices plummet.
- Wealthy individuals are moving their money abroad.
The overall sentiment among the populace can be summed up in the phrase: “the garbage time of history.” This analogy draws from sports, suggesting that many feel their country is in a losing match, devoid of hope for improvement. This bleak outlook starkly contrasts with the optimism of 2019, when China’s economy was buoyed by predictions of it overtaking the United States as the world’s largest economy.
A Shift in Economic Policies
Amid growing concerns, Xi Jinping took steps to address the economic downturn. In a move welcomed by many, he approved a stimulus package aimed at revitalizing the economy. Key features of this package include:
- Easing regulations to allow banks to lend more freely.
- Reducing borrowing costs for households and businesses.
- Cash handouts for disadvantaged citizens to spur consumption.
- Subsidies for recent graduates struggling with unemployment.
These measures are part of an ongoing campaign to instill confidence in the economy. The ruling Communist Party’s Politburo reinforced this positive narrative in their September meeting, marking a significant shift in tone from previous months.
Growing Social Divides
Despite efforts to boost the economy, growing social tensions are emerging. Resentment is increasing among different social groups as economic divides widen. Many people are left wondering if the government’s actions will be enough to bridge these gaps.
Older generations, particularly women, are often responsible for caring for young children, which adds pressure to their already strained home lives. The ongoing struggles during the recent three-day holiday showcased just how many people felt confined and unable to enjoy the celebrations due to economic worries.
Looking Ahead: Avoiding a Lost Decade
As China tries to steer its economy back on course, concerns about history loom large. Xi Jinping is particularly wary of a fate similar to Japan’s “lost decade,” which followed a real estate crash in the 1990s. Experts warn that China needs to act decisively to prevent a similar trajectory.
The coming year will be critical for the Chinese government. The balance between maintaining growth and addressing the needs of its citizens will be a significant challenge.
- Will the stimulus measures make a difference?
- Can the government effectively address growing social unrest?
- How will young professionals’ struggles affect the nation’s future?
Only time will tell if these efforts will revive China’s economic spirits or if the nation remains mired in uncertainty as it celebrates this significant anniversary.
As Communist China celebrates its 75th birthday with big celebrations, there are some serious economic problems lurking underneath. Many people are feeling unhappy, and leaders need to find smart ways to fix the economy and help everyone feel more hopeful about the future.
