Recently, the Chinese government has issued multiple documents claiming to “focus on solving urgent issues concerning people’s livelihood” in order to boost residents’ income and consumption. However, the public points out that what people urgently hope for is for the Chinese Communist Party and Xi Jinping to step down as soon as possible. Analysis suggests that behind the official issuance of these documents lies a deep-seated anxiety within the decision-making level regarding the downward economic trend and weak consumption. Furthermore, economists point out that stagnant wages are a “objective reality” and may even decrease.
In March of this year, the General Office of the Communist Party of China Central Committee and the General Office of the State Council issued the “Special Action Plan to Boost Consumption” and issued a notice requiring all regions and departments to implement it in practice.
Recently, the General Office and the State Council once again issued the “Opinions on Further Guaranteeing and Improving People’s Livelihood and Focus on Resolving Urgent Issues Concerning People’s Livelihood”, mentioning measures such as “reasonably raising the minimum wage standards”.
Many netizens have expressed doubts, believing that this is just another issuance of documents, as the problems run too deep to be fundamentally changed.
Blogger “Banned Commentary TV” made a scathing comment on this. He stated that the official claim to address the “urgent issues concerning people’s livelihood” in the “Opinions” sounds heartwarming, but what the vast majority of people long for is exactly for the Communist Party and Xi Jinping to step down! The dictatorship of the Communist Party is the root of all problems. He cited the issue of wage arrears for migrant workers as an example, pointing out that this problem continues day after day, year after year. From the last century to this century, decades have passed without resolution. Yet here we are in 2025, and the State Council is still issuing documents emphasizing this issue. In the 21st century, they continue to convene meetings daily, saying not to delay wage payments. This kind of abnormal phenomenon is incomprehensible in any normal country. In a democratic country, just this alone would be enough for the ruling party to step down.
“Actually, it’s not surprising at all. China is a authoritarian country with countless laws, but has no rule of law. Under the rule of the Communist Party, the party is above the law, power is above the law, there is no judicial independence, and no real rule of law. Like the entrenched new normal of wage arrears, they are always trying to govern through special actions, rather than using laws and systems to constrain. The special actions end, but the old problems persist, investigated over and over again, in a cycle. The grassroots laborers work overtime, receiving extremely low wages. Meanwhile, the officials within the system sit in air-conditioned offices, their salary and treatment in a completely different world from the workers. The most numerous and lowest-level grassroots employees, their urgent concern is to get rid of the parasitic officials sucking their blood. No matter how well the documents are written, they have no voting power, so ultimately those are just empty promises. Ultimately, the greatest urgent hope of the people is for the Communist Party and Xi Jinping to step down. But when will this issue be resolved in these opinions?”
This kind of public anger contrasts sharply with the grim reality facing the Chinese economy. Financial blogger “Tom” pointed out that the continuous policies issued by the authorities expose their deep-seated anxiety towards the economic downturn and weak consumption. He indicated that from the “Special Action Plan to Boost Consumption” issued in March to the recent “Opinions on Focus on Resolving Urgent Issues Concerning People’s Livelihood”, it shows that the Chinese government is aware that “people dare not spend money not because they don’t want to, but because they don’t have money in their pockets and lack confidence in their hearts.” If wages do not rise, consumption cannot be boosted, and the economy cannot recover. The continual introduction of these policies by the Communist Party aims to stabilize the confidence of its “leeks”.
However, he admitted that despite the numerous similar slogans shouted by the authorities, the actual actions are few and far between, and the public has become numb. The entrenched problem of deflation in the Chinese economy is deep-rooted, and short-term policy stimuli are no longer effective. Behind weak consumption is high household debt and a slowdown in income growth tearing apart.
He cited data showing that in 2024, the total retail sales of social consumer goods, after deducting price factors, grew by less than 1%, highlighting the harsh reality of weak consumption. Against the backdrop of high household debt and slowing income growth, from the distribution of consumer vouchers in 2020 to the current “state subsidization” policy, the stimulus intensity has been increasing, but the effect has been weakening.
He said, “Everyone is degrading consumption, and many young people are living extremely minimalist lives. If this continues, how can consumption possibly improve?”
Recently, renowned economist Xiang Songzuo’s speech on the topic of “wage increases” leaked, where he frankly depicted the economic truth that every Chinese person must face—since 2010, wage growth has noticeably slowed down and could even decrease in the future.
Xiang Songzuo candidly admitted that this is a “harsh reality,” and that people “might not be happy to hear this, and may even be very angry or desperate,” but this is the objective truth of reality.
He issued a more serious warning: “In the future, it may really be difficult for your wage level to rise again, not only will it not increase, it may even decrease.”
He said, “As a person who studies economics, as an economist, our responsibility is to tell everyone the truth. We don’t want to deceive anyone; we want to tell everyone the truth about the economy, the truth about finance.”
Faced with this new normal, Xiang Songzuo provided several suggestions.
First, adjust expectations for life and maintain a rational mindset: Avoid unrealistic fantasies about life, such as pursuing luxury mansions. Adjust expectations to a state where “clothing, food, housing, and transportation can be maintained in a relatively comfortable state”, in order to avoid anxiety and despair due to a gap in expectations.
Second, do your job well and ensure stable income: In the reality where wages are unlikely to rise significantly, it is most important not to chase high salaries but to ensure stability of income, striving to avoid unemployment. If you lose your current job or find it inadequate, you should find ways to create new income possibilities. Having income and being able to work are crucial.
Third, manage finances sensibly with safety as a priority: For ordinary people with savings, the first principle of financial management is “security”. Do not take risks lightly and pursue high returns; if you have hundreds of thousands in savings and take risks, in a “99% probability, your principal will vanish”. Under the premise of securing your principal, having a return of a few percentage points each year is already ideal.