CCP’s Policies Put the Country in Crisis

Since 2012, China’s economic growth has been phenomenal, averaging 6.7% annually. By 2021, China’s GDP has reached $18 trillion, or 18.4 percent of the global economy, according to the World Bank. But its growth has been shrinking since last year due to the policies of the Chinese Communist Party. In recent years, the policies of the Chinese Communist Party, especially of Communist Party leader Xi Jinping, have set off great turmoil in China. Their draconian zero-tariff policy, which began in late 2020, has hit China’s private sector, causing the economy and job market to slump. In the past two years, China’s top tech industries, Alibaba and Tencent, have lost more than $1 trillion in market value after thousands of employees were laid off, leading to a record 19.9 percent youth unemployment rate in July 2022. In China this year, a record 10.7 million young people graduated and joined the job market, many of whom are facing difficulties finding work. The real estate sector has also suffered huge losses, accounting for 30 percent of the country’s GDP’. Thousands of angry homebuyers refused to pay mortgages on stalled projects, prompting authorities to pressure banks and developers. In addition, in July, some rural banks froze the deposits of millions of middle-class citizens, leading to protests. Authorities violently dealt with peaceful protests by hundreds of depositors demanding their life savings from the banks. This banking scandal threatens hundreds of thousands of customers and highlights the collapsing financial situation in China. China’s middle class is frustrated with the recent economic performance of the Chinese Communist Party and Xi Jinping. Xi Jinping may be one of China’s most influential leaders, but he cannot claim credit for the country’s progress. Xi Jinping has followed what his predecessors built, but failed to sustain growth. The CCP and Xi are not on the right path; instead, he and his party are threatening the future of the country and business with tighter state control.