China’s sputtering economy has its worried leaders pulling out all the stops.
They have unveiled stimulus measures, offered rare cash handouts, held a surprise meeting to kickstart growth and tried to shake up an ailing property market with a raft of decisions – they did all of this in the last week.
On Monday, Xi himself spoke of “potential dangers” and being “well-prepared” to overcome grave challenges, which many believe was a reference to the economy.
What is less clear is how the slowdown has affected ordinary Chinese people, whose expectations and frustrations are often heavily censored.
But two new pieces of research offer some insight. The first, a survey of Chinese attitudes towards the economy, found that people were growing pessimistic and disillusioned about their prospects. The second is a record of protests, both physical and online, that noted a rise in incidents driven by economic grievances.
Although far from complete, the picture neverthless provides a rare glimpse into the current economic climate, and how Chinese people feel about their future.
Beyond the crisis in real estate, steep public debt and rising unemployment have hit savings and spending. The world’s second-largest economy may miss its own growth target – 5% – this year.
That is sobering for the Chinese Communist Party. Explosive growth turned China into a global power, and stable prosperity was the carrot offered by a repressive regime that would never loosen its grip on the stick.
Bullish to bleak
The slowdown hit as the pandemic ended, partly driven by three years of sudden and complete lockdowns, which strangled economic activity.
And that contrast between the years before and after the pandemic is evident in the research by American professors Martin Whyte of Harvard University, Scott Rozelle of Stanford University’s Center on China’s Economy and Stanford masters student Michael Alisky.
They conducted their surveys in 2004 and 2009, before Xi Jinping became China’s leader, and during his rule in 2014 and 2023. The sample sizes varied, ranging between 3,000 and 7,500.
In 2004, nearly 60% of the respondents said their families’ economic situation had improved over the past five years – and just as many of them felt optimistic about the next five years.
The figures jumped in 2009 and 2014 – with 72.4% and 76.5% respectively saying things had improved, while 68.8% and 73% were hopeful about the future.
However in 2023, only 38.8% felt life had got better for their families. And less than half – about 47% – believed things would improve over the next five years.
Meanwhile, the proportion of those who felt pessimistic about the future rose, from just 2.3% in 2004 to 16% in 2023.
While the surveys were of a nationally representative sample aged 20 to 60, getting access to a broad range of opinions is a challenge in authoritarian China.
Respondents were from 29 Chinese provinces and administrative regions, but Xinjiang and parts of Tibet were excluded – Mr Whyte said it was “a combination of extra costs due to remote locations and political sensitivity”. Home to ethnic minorities, these tightly controlled areas in the north-west have long bristled under Beijing’s rule.
Those who were not willing to speak their minds did not participate in the survey, the researchers said. Those who did shared their views when they were told it was for academic purposes, and would remain confidential.
Their anxieties are reflected in the choices that are being made by many young Chinese people. With unemployment on the rise, millions of college graduates have been forced to accept low-wage jobs, while others have embraced a “lie flat” attitude, pushing back against relentless work. Still others have opted to be “full-time children”, returning home to their parents because they cannot find a job, or are burnt out.