CHINA’S ECONOMY STUMBLES: Common Prosperity Plan Faces Uncertain Future
By Yangchen Lhamu
DHARAMSALA, 20 Sept: China’s “Common Prosperity” initiative, launched by President Xi Jinping in 2021, which sought to address deep-seated inequalities aiming to create a more equitable society and reduce economic inequality, has sent shockwaves through China’s professional class. Thousands of educated workers once driving the country’s rapid growth now face decreasing salaries, job insecurity, reduced access to international education, and government scrutiny of luxury lifestyles, reports WION.
According to the report, this sudden shift has sparked widespread anxiety and disillusionment among China’s educated elite, questioning the value of hard work and entrepreneurship. In a new era of uncertainty, China’s economic transformation focused on rebalancing growth and addressing social inequality has led to a downturn in financial services, technology, and real estate sectors, stricter regulations on industries once deemed lucrative, and an emphasis on social welfare and domestic consumption.
Experts have warned that the growing discontent among China’s professionals may exacerbate the country’s economic challenges, potentially impacting consumer spending, innovation, and foreign investment.
A ‘Garbage Time of History’, a popular phrase criticised by official media, reflects the sentiments of many disillusioned professionals. This growing frustration threatens to undermine China’s economic stability and global influence, the report added.
As China navigates this critical transition, the world watches closely, aware that the country’s economic health has far-reaching implications. Any turbulence in the Chinese economy has the capacity to bring about long-term troubles for the entire world due to the number of exports that the nation carries out for major countries throughout the globe, as reported by The Economic Times.
China, one of the superpowers in terms of international trade, is developing fears of recession. The unemployment rate has seen a sharp increase, with the current figure being the highest in the past six months, according to a Bloomberg report. The cost of housing has also reflected a stark decline in recent months, the fastest in the last decade.
China’s declining factory output and investment have exposed significant economic vulnerabilities, posing risks to global stability, The Economic Times opined. Based on the report, as the world’s second-largest economy, China’s struggles may disrupt supply chains, impact trade, and affect economic stability worldwide. Official statistics indicate a slowdown in China’s economic growth across key sectors in August, paving the way for potential government intervention.
