On the occasion of the approaching 75th anniversary of the Chinese Communist Party’s rule, the authorities have unusually announced the distribution of one-time living allowances to the extremely poor, orphans, and others. Analysts believe that the CCP’s primary motivation is for stability considerations, seeking to buy the people’s hearts through monetary handouts to alleviate pressure from Chinese people questioning the regime. The massive expenditures associated with funding the Communist Party with public funds should be a focus of attention.
October 1st this year marks the 75th anniversary of the CCP’s rule. The CCP’s official newspaper, People’s Daily, reported that the Ministry of Civil Affairs and the Ministry of Finance will provide “one-time (single) living allowances” to the destitute (those facing especially difficult living situations), orphans, and other disadvantaged individuals before October 1st. The authorities declared that this move demonstrates their “care and concern for the disadvantaged groups.”
However, the announcement did not specify the details of this financial assistance, including the amount of money being distributed.
According to data from the Ministry of Civil Affairs, as of June, there were 4.74 million “extremely poor individuals” in China. These individuals are defined as those without work capacity, no source of livelihood, incapable or without legal obligation to support, foster, or care for dependents, including urban and rural elderly, disabled individuals, and minors under 16 years of age.
Former Chinese Premier Li Keqiang revealed in the 2020 National People’s Congress that there were “600 million low-income and below individuals in China, with an average monthly income of around 1000 yuan.” However, the one-time financial assistance this time does not cover this extensive low-income group.
Commentator Li Linyi told Dajiyuan that this insignificant amount of money spent by the CCP on domestic expenses is merely a gesture of goodwill aimed at diverting public attention away from the regime’s crisis. He emphasized the need for attention to be directed towards the issue of public funding for the Party.
According to Li Linyi, the significant expenditures by the CCP in countries such as Africa are essentially funded by the Chinese people collectively, without their consent. The CCP has long been criticized for blurring the lines between public and private funds, with the Chinese bearing the financial burden of the Party, government, military, National People’s Congress, Chinese People’s Political Consultative Conference, and the vast number of officials within the system, as well as the generous benefits for retired officials over the years.
At a press conference of the National People’s Congress on March 11, 2016, a spokesperson for the NPC responded to questions from domestic media regarding when the Party’s budget would be made public, stating that “this is a difficult question” and admitting that the central budget includes the Party’s budget. Netizens viewed this as the authorities openly acknowledging that the Party’s expenses are funded by the people.
Yang Shaoyi, a former professor at Guizhou University’s School of Economics, revealed in a 2017 overseas article that the CCP engages in “public funding for the Party”. He pointed out that the CCP uses tax revenue and state-owned enterprise profits to support approximately 20 million full-time Party officials and some non-Party social group staff, causing an estimated loss to society of around 20 trillion yuan. If this situation persists, society will eventually collapse.
Yao Yuan, professor of international studies at St. Thomas University in the United States, stated to Dajiyuan that the CCP’s cash distribution this time is in response to the current internal economic situation, aiming to reduce pressure on the regime from public scrutiny by employing domestic monetary stimulus. Additionally, this assistance reflects the very poor economic and living conditions in China following the pandemic.
With this cash distribution coinciding just before the 75th anniversary of the CCP’s rule, Yao Yuan believes the authorities may be aware of growing dissent among the grassroots population.
Online writer Li Mianying also told Dajiyuan that the CCP’s current cash handouts to some underprivileged individuals are mainly aimed at improving its image among the populace, although the funds are limited and one-time only.
“The pressure cooker in the country has reached its limit and is about to explode soon. The government is trying to relieve the pressure through this method. Money is urgently needed now, so a small amount is being given to the lower strata of society initially.”
Following the lifting of the “zero-COVID” policy in China, the economy remains stagnant, with insufficient domestic demand leading to discussions on the internet about “downgrading consumption,” “middle class falling into poverty,” “deflation,” and “drastic salary reductions,” and soaring youth unemployment rates. The real estate industry is facing challenges, and local governments across China are heavily indebted.
The 20th Central Committee of the CCP, which concluded on July 18th, was seen as failing to provide effective solutions to the economic hardship. Huang Yiping, a member of the Monetary Policy Committee of the People’s Bank of China, previously advocated for a shift from the current “heavy investment, lighter consumption” philosophy, urging the government to “directly give money to the people.”
However, in 2022, when China’s economy was in crisis and public opinion demanded government assistance to the lower strata of society, CCP leader Xi Jinping through party media stated that China’s so-called socialism with Chinese characteristics should not embrace “welfarism.”
Yao Yuan believes that the CCP is now indirectly attempting to buy people’s support for political reasons, but the extent of its effectiveness will ultimately depend on how much money the people actually receive.