The once optimistic and enthusiastic Chinese middle class is now facing a grim reality, with many slipping towards poverty. This presents a dangerous situation for the Chinese Communist Party (CCP), as it gives the impression that the leadership has failed to deliver prosperity to the people.
The ongoing property crisis in China has been a major factor in the decline of the middle class. The failure of major real estate developers has led to a decrease in home building and buying, causing a drop in the value of existing homes, which are a significant source of wealth for many Chinese households.
Recent data on income tax revenues and starting salaries paint a bleak picture of the middle class’s financial situation. Personal income tax receipts have decreased, indicating that many households have fallen below the middle-class income level. Starting salaries and bonuses have also seen a decline, leading to a decrease in luxury sales and high-end purchases.
The current economic situation offers little hope for the future of China’s middle class. As households cut spending and focus on rebuilding savings, the CCP must address the growing discontent among the people who were promised prosperity. This troubling reality should be a cause for concern for Xi Jinping and the rest of China’s leadership.
Source link
