The challenge of revitalizing China's struggling economy is daunting.


In 2004, a group of researchers in China began conducting surveys to gauge people's financial well-being. The percentage of respondents who felt wealthier increased over the years but dropped to 39% in 2023. This decline reflects the challenges facing China's economy, which is experiencing a crisis due to the post-Covid rebound falling short of expectations. The real estate sector, which previously supported family savings and the banking sector, is now in crisis, leading to reduced consumer spending and business struggles. The population has also shrunk for two consecutive years, adding to the economic concerns. Businesses are cutting back, and millions of college graduates are facing limited job prospects. This economic uncertainty has led to decreased consumer spending, with notable declines in various sectors like e-commerce, movie box office sales, and even changes in consumer purchasing behavior. Foreign firms are also retrenching, with some companies announcing job cuts and closures of their operations in China. The government's efforts to address the crisis are hindered by the inability to rely on past solutions, as excessive borrowing for infrastructure projects has led to substantial debt. The Chinese government has restricted access to economic data and discouraged public comparisons with past economic crises. The country's debt, along with declining real estate prices and underperforming stocks, has led to economic uncertainty and a search for safe investment opportunities. China has forecasted a 5% economic growth for the year, driven by a surge in exports. However, this has also led to a surplus of supply and challenges for high-tech manufacturing industries. Despite attempts to downplay economic concerns, fundamental problems persist, especially for the younger generation facing a shortage of job opportunities. Youth unemployment has risen, and recent graduates are struggling to find suitable employment, with many facing unfavorable job conditions and low salaries. Overall, the Chinese economy is facing significant challenges, and the road to recovery appears uncertain.



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