According to the latest economic data published by the National Bureau of Statistics of the Chinese Communist Party (CCP), the key indicators are still showing growth, indicating an improvement in the economy. However, the CCP Central Committee and the State Council are taking actions that contradict this narrative. Recent policy documents issued require all party and government agencies to lead a frugal lifestyle. Experts suggest that whenever the Chinese economy faces major challenges, the CCP tends to issue documents promoting “living frugally.”
On May 19, the National Bureau of Statistics of the CCP announced the economic data for April, stating that the major indicators showed stable and rapid growth, emphasizing a continued positive momentum in China’s national economy. However, on the same day, the CCP mouthpiece, People’s Daily, featured headlines about the government’s call for savings, anti-waste measures, and the need to adopt a frugal lifestyle.
Commentary in People’s Daily pointed out that the newly revised “Regulations on Implementing Frugality and Opposing Waste in Party and Government Agencies” by the CCP Central Committee and the State Council represents an upgraded system to combat extravagance. The revised regulations impose stricter guidelines for party and government agencies to lead a frugal lifestyle, ensuring that limited financial resources are utilized efficiently. The new regulations introduce additional savings requirements for official travel, receptions, and conference activities, including restrictions on overseas research trips and learning activities, prohibition of mutual feasting at public expense, and discouragement of unnecessary events and meetings, emphasizing individual responsibility to combat waste.
According to reports by Radio Free Asia, Chinese independent political analyst Chen Daoyin pointed out that historical records of the CCP show that similar documents have been issued in the past during times of economic crisis or significant challenges.
Chen explained that during the economic crisis in 1980 and the financial storm in 1997, similar directives on frugality and waste reduction were issued by the CCP to streamline the economy. Comparing these instances throughout the history of CCP rule, it becomes apparent that such directives are issued when the Chinese economy faces difficulties and financial constraints. The squandering of resources by party and government agencies has begun to impact the normal functioning of the national finances, indicating a need to tighten spending.
Chen highlighted that despite the recent announcement during the China-Latin America forum held in Beijing where China pledged 66 billion in credit to Latin American countries, the call for frugality only seems to target local governments and grassroots officials, with no direct impact on the central government.
In fact, various local governments had already started cutting back expenditures even before the central government’s directive. Provinces like Henan, Shandong, and Guangdong have reported instances of delayed or reduced salaries and allowances for teachers and civil servants. Retired teacher Jia Lingmin from Zhengzhou expressed concerns over budget constraints leading to layoffs among school staff.
Jia stated, “The school administrative staff, who are essentially junior civil servants, used to receive bonuses higher than their base salaries. Now, they are left with only their wages, with almost no bonuses or incentives. In schools located farther away from urban centers, many contract teachers were hired previously. They are also teachers but without official positions as civil servants. They used to have pension plans and receive regular salaries. I know a teacher who falls under this category of contract teachers; they have been dismissed and removed from their positions.”
A Chinese lawyer, Mr. Wu, who has represented cases involving forced evictions, disclosed that several local governments, facing financial constraints, have resorted to withholding compensation intended for eviction victims as a means to cut down on expenses.
Mr. Wu mentioned, “Local governments are cutting back on various allocations, such as compensation for evictions. When individuals win compensation cases, the government diverts the funds intended for compensation to cover administrative costs, leaving individuals without proper compensation. There have been cases of urban village redevelopment and widespread rural evictions, which are government-led projects. Developers and construction companies are required to deposit compensation funds for the evicted individuals into monitored government accounts. However, these funds often do not reach the affected individuals as the government misappropriates the money.”