Xi Jinping's China is reeling under the weight of an unprecedented economic crisis, while the collapse of the property market and tensions with the United States are shaking the country to the core. The President can no longer rely on economic growth to consolidate his power, a strategy that has proved its worth in the past.
Chinese income growth is slowing, the lowest since the 1980s, and the property crisis is weighing on household wealth. An analysis of the evolution of freedom and economic growth in China over the last 40 years reveals a period of reform under Deng Xiaoping, marked by an increase in growth and social freedoms. However, under Xi Jinping, China seems to be returning to a level of restricted freedoms similar to that of the Mao Zedong era, despite a higher standard of living.
Demonstrations, mainly motivated by economic concerns, bear witness to a growing malaise. Testimonies from managers and manual workers alike point to an uncertain future.
The promise of a better life, the pillar of the Communist Party's legitimacy, was showing signs of weakness. The protests, though scattered, are a symptom of crumbling confidence.
The people interviewed express their disillusionment and are preparing for an era of frugality.
Bloomberg TV provided by MT Newswires
