China’s economy is sluggish, with the Central Finance and Economics Committee of the Chinese Communist Party using the pen name “Zhong Caiwen” to publish articles for four consecutive days in an attempt to restore market confidence, but the effectiveness is being questioned by outsiders. Analysts believe that the CCP is not facing the issue of saving the economy, but rather falling into a dilemma, even a multi-difficult trap. These articles indicate that the CCP is shifting toward a quasi-wartime economic system.
On August 25, an article signed by “Zhong Caiwen” was published in the CCP’s People’s Daily, stating, “Fully unleash the effectiveness of existing policies and promptly plan for practical and effective new policies.” The article encourages to “stay firm in confidence and face challenges head-on”.
This is the fourth article published consecutively by “Zhong Caiwen”.
In the article on August 24, “Zhong Caiwen” claimed that China’s economy faced upward pressure in the first half of the year, with a year-on-year GDP growth of 4.7%, achieving “hard-won and valuable results.”
The article published on August 23 also mentioned that China’s economy is facing upward pressure, “demonstrating exuberant vitality and strong resilience.”
In the article on August 22, the Central Finance Commission emphasized that observing China’s economy should not only focus on speed but also should not be entangled in the highs and lows of individual quarterly or monthly indicators.
The CCP’s official newspaper has a system of pseudonymous comments, and “Zhong Caiwen” represents the voice of the Central Finance and Economics Committee. Since September 30 last year, the CCP’s People’s Daily has published articles by “Zhong Caiwen” for eight consecutive days.
China’s GDP growth in the second quarter was 4.3% year-on-year, lower than the 5% in the first quarter, with quarterly growth hitting the lowest level in over three years, at 4.7% for the first half of the year. However, there are constant rumors of official data being inflated.
Furthermore, the latest official economic data for July shows sustained economic weakness, with industrial added value increasing by 4.5% year-on-year, significantly lower than June’s 5.3%; total retail sales of consumer goods only increased by 0.6%, far below market expectations. In July 2026, the unemployment rate for urban youth aged 16 to 24, excluding students, reached 17.9%, a new high in eleven months.
Hong Kong’s Ming Pao stated that a few articles cannot boost the market, restore confidence, or paint a rosy picture of the Chinese economy. What the market is concerned about is practical measures to solve income and expectation issues. Ordinary people continue to face tough times, with real unemployment rising and incomes decreasing.
Veteran political and economic analyst Qin Peng in a self-media program expressed that the Central Finance and Economics Commission, led by Xi Jinping himself, previously headed by Liu He, and now succeeded by Xi Jinping’s trusted economic strategist from Fujian, He Lifeng. These articles are messages directly to the entire society by Xi Jinping and He Lifeng’s economic team, bypassing all ministries.
Qin Peng believes that the current phase is the second half of the beginning of the “15th Five-Year Plan”. Amid the conclusion of the Beidaihe meeting and the upcoming Fifth Plenum, next year will be the 21st Congress. At this juncture, China’s economic data has raised significant concerns domestically and internationally. The series of articles from the Central Finance Commission have been carefully planned to convey a common message: stay calm. However, the more they stress not to panic, the more anxious the situation becomes.
Qin Peng pointed out that behind the articles are deeper issues. The CCP is not just faced with the dilemma of saving the economy, but falling into a two, if not more, difficult situation. The first difficulty lies in the need to rescue the economy but lacking financial resources; the second challenge is between developing a high-quality economy or maintaining regime security. The CCP’s greatest experience from reform and opening up is to delegate power to the private sector and reduce government control. Presently, the market desperately needs a breather, but the CCP, to deal with internal turmoil and external conflicts, must strengthen absolute control over resources, creating a deadlock: only contracting without spending, only controlling without loosening. At this point, the distribution of every penny in the budget is no longer an economic issue but a political one.
Qin Peng stated that the series of articles from the Central Finance Commission essentially represent a strategic mobilization of CCP’s shrinking defense line in the background of significant economic hemorrhage. They announce that the CCP is abandoning comprehensive prosperity and shifting toward a quasi-wartime economic system. The limited funds will not flow into the pockets of the people but will continuously be channeled to the frontlines of the high-tech Cold War, the fortress of energy security, and the stability maintenance apparatus of the CCP.