【Breaking News】
In the latest update, it has been reported that the Chinese leadership has unleashed seven new challenges that are looming over the country. These challenges have been referred to as “black swans” by netizens. The first of these black swans is the pending collapse of the real estate market. The second is the uncontrollable local government debt, while the third is the looming financial crisis with an ever-increasing number of 70 million financial support staff, including members of the royal family, swelling the ranks to a point where the government fears to investigate or provide accurate statistics.
What lies ahead for this massive workforce of 70 million individuals? The fourth challenge is the aging society, with over 200 million elderly people in China, including 80 million receiving retirement pensions and 120 million receiving a basic monthly pension of 70 RMB. The fifth black swan is the decline in China’s manufacturing industry and manufacturing employment, exemplified by a loss of 160,000 manufacturing jobs in Zhejiang Province in 2023. The sixth challenge is the alarmingly high domestic food prices, which are currently 50% higher than international market prices, significantly impacting the living standards of low to middle-income earners. Despite this, China’s food imports continue to increase rapidly.
The seventh black swan is the enormous population of university students who have nowhere to go after graduation. And behind these black swans lie even more challenges and uncertainties.
In the current economic landscape, neither deflation nor inflation, but a situation best described as “destruction for all!” Introducing a new term: “destruction for all!” merging deflation and inflation into a lethal combination. The prices of water, electricity, gas, and gasoline continue to rise, presenting a grim reality for the lower-income population. This is not deflation but a relentless squeeze on the grassroots. Inflation, on the other hand, leads to soaring prices, eroding the value of money. However, the prices of real estate, cars, home appliances, and clothing are on a downward trend, creating a paradoxical situation. Presently, the economic situation is not deflation or inflation but the harsh truth of destruction impacting everyone!
As all external relations data indicate, China seems to have regressed back to its 2001 state, before joining the WTO and opening up to the world. The ostensible open door has, in reality, been closed due to internal and external pressures, marking a new era of isolation.
In a curious incident that mirrors the age-old tale of falsely accusing Judge Bao, a woman disrupted a theater performance where Qin Xianglian was filing a lawsuit against Judge Bao. Despite it being a staged act, the emotional plea from the woman to Judge Bao highlights the depth of discontent and injustice prevalent in society.
The Russian Central Bank recently stated that the Renminbi has become the only and best choice for foreign exchange reserves. If Russia were to issue bonds in China, the likelihood of redemption would be minimal, akin to turning into a financial vampire, as the Russian Ruble has essentially become obsolete following its expulsion from SWIFT.
In a modern twist on the traditional “Three Friends of Winter,” some jokingly refer to Chinese President Xi Jinping, Russian President Vladimir Putin, and North Korean leader Kim Jong-un as the new trio of friends facing international isolation. Particularly, Russia finds itself at the forefront of isolation, especially after its invasion of Ukraine, with President Biden labeling Putin as the “international outcast.” Nonetheless, Putin still has a few friends, including Xi Jinping, whom he sees as his “best friend.”
Stay tuned for more updates on these developing stories.