In the United States, politicians dread hearing voters say they are worse off now than four years ago. In China, this is also a sharp topic that resonates widely.
For many Chinese, the feeling is like living in two different worlds four years ago and now. Over the past four years, continuous challenges such as the collapse of the real estate market, the US-China trade war, suppression of private entrepreneurs, and the three-year COVID lockdown have hindered economic development.
A mainland netizen posted on Weibo, saying: “Just started paying off the mortgage and they are talking about cutting salaries… life is tough.”
Another netizen’s post also resonated with many. He wrote: “The current situation is cheap labor, a sluggish market, with most people already facing low income due to unemployment, salary cuts, and layoffs, on top of soaring prices.”
According to data from the recruitment platform Zhaopin, nearly one-third of white-collar workers saw a decrease in income in 2023, from real estate to technology and finance. These industries have all been hit by the Chinese Communist Party’s crackdown on so-called excessive behavior.
Business surveys show that Chinese factories and offices are now more focused on layoffs than hiring, even official figures from the People’s Bank of China show that the public is pessimistic about future income prospects.
Bloomberg reported on Mr. Hu, a working-class individual in Shanghai who left his hometown to work hard for nearly a decade, finally bought a house in 2020, and used his hard-earned savings to buy a car as a side business. He was confident about the future.
Four years later, he now feels “despair.” Property prices have fallen by nearly a quarter, and the business of ride-hailing has also significantly declined.
While chatting with passengers, he suddenly realized that most people are struggling in life, all complaining about the incompetence of the rulers.
Real estate bubbles, industrial overcapacity, high debt, and low birth rates are all major imbalances that China must address.
Although Beijing has hinted at more stimulus measures and announced that the Third Plenary Session will be held in July, these cannot change the overall situation as they involve population structure, debts, and overcapacity, all of which are global challenges.
Nationwide, regardless of income levels, Chinese entrepreneurs and workers are experiencing shrinking wallets.
Mr. Huang, engaged in export trade of power equipment in Guangdong Province, said that the years prior to the outbreak of the pandemic were his golden years. He bought a Tesla Model X and also a house in Nanshan District, Shenzhen.
Regarding his current business, he said it has never been this bad. Manufacturers are reluctant to commit to long-term contracts due to weak sales and uncertainties about the future.
Mr. Huang said that for local businesses, 2023 was tougher than the years following the pandemic’s onset. He knew many people were trapped in debt, needing to pay expensive mortgages, with some houses being forced into foreclosures.
His company has already laid off five workers. He joked that he was living off his wife’s income.
A video circulating on social media platform X shows people protesting outside the Education Bureau in Futian District, Shenzhen.
Foreign Language School in the Futian Free Trade Zone faces closure by July 20, leaving the students with nowhere to study. Parents were compelled to protest at the Education Bureau on May 20.
A young mother in the video said, “In this city, who isn’t under immense pressure? I might be dismissed by my leader tomorrow because I’m taking care of my child.
“I finally settled down in a school, and this is like the final straw that breaks me.
“We are not here to cause trouble, we just want to ask, why? Why would this happen to us?”
Since Chinese leader Xi Jinping started his third term, the Communist Party has further strengthened surveillance and social stability.
According to research firm Comparitech, Chinese cities are the most heavily surveilled areas globally, with an average of one CCTV camera for every two people. According to a report by the US-based human rights organization Freedom House, protests related to economic issues, particularly real estate collapses, have become more frequent across China. In 2023, researchers recorded 2,891 public dissent events, with about 80% related to economic problems.
Protest videos about unfinished buildings and incomplete apartment projects have been spreading on the internet one after another.
Anthony Saich, a Chinese government professor at Harvard University, said, “I have never seen or heard the middle class in China so profoundly frustrated and upset.” He has been visiting China frequently since 1976.
Even more concerning is that social turmoil in China has spread to the next generation.
On May 18, Dr. Peng Zugui, a psychiatrist at West China Hospital of Sichuan University, posted on Weibo, stating that out of 54 students in a class at a school in Chengdu, 18 were depressed, with 5 severely depressed.
“Students in Chengdu Junior High Schools are more severely depressed than ever!
“In this key class, fierce competition among students is present, any relaxation could lead to being at the bottom of the class, sitting at the back of the classroom, not receiving the teacher’s attention. Comparisons of grades are everywhere, and poor academic performance easily leads to isolation. One failed exam could trigger a chain reaction, causing the child’s mental defenses to gradually collapse.”
However, because the post spread too quickly, the renowned doctor quickly deleted the original post.