Opinion / James Chambers
Pride before a fall?
China is on holiday this week and more than one billion people are basking in the glow of Tuesday’s National Day military parade in Beijing – or just genuine sunshine. On WeChat, plenty of patriotic posts about a prosperous new China are being sent from exotic beaches in faraway foreign lands. Socialism with Chinese characteristics (otherwise known as capitalism) has been a triumph for a lot of people. But everything is far from golden for the leadership in Beijing as they get back to business.
This month the Communist party will hold its most important meeting of the year and the forecast will look gloomy. A slowing economy, compounded by the US trade war, means that economic growth can no longer be taken for granted. Employers are becoming anxious about hiring and some companies are shedding jobs. Beijing needs to produce 11 million new positions this year simply to satisfy university graduates and rural Dick Whittingtons flocking to the city.
Premier Li Keqiang is encouraging everyone to become an entrepreneur but financing is getting harder to come by: start-ups find it tougher to raise capital, while small businesses struggle to get bank loans. To free up positions, expats are being nudged toward the exit and young foreign talent struggles to get work visas. Some graduates are still, however, returning home from overseas with fancy foreign degrees only to find themselves cutting hair. Mass unemployment is one of the Communist party’s biggest existential threats and no amount of “Made in China” military hardware can change that.