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The year's nearly done, everyone's had enough of politicians telling them what to do, and 74 year old men are in the streets recommending we burn down the offices of "those scum who have decided to go ahead with introducing new fascism".
What's this got to do with China?
Absolutely nothing. I was just trying to raise a smile before getting into China yet again.
See, 2022 is China's Year of the Tiger. But I don't see them roaring...
It's all looking pretty bleak.
We've talked about this a lot already this year and it looks like 2022 will see more of the same.
Some highlights 👇
As regulators tighten their iron grip, the economy slows and doubts about the future continue to weigh, job losses are starting to mount.
Video-streaming services are cutting staff. Companies that offer tutoring are reducing teachers and shutting down apps, and real-estate agents have been let go as China’s housing market slows.
Beijing has unleashed a raft of new regulations on the industries as Chinese leader Xi Jinping seeks to rein in what Chinese officials have described as capitalist excesses.
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Where's the real growth going to come from? Where are the opportunities? Everywhere you look, the heavy hand of the government is indirectly limiting employment options with these widespread crackdowns.
Which leads to a very discouraged workforce...
If you can't beat 'em, join 'em?
More people are eyeing government jobs—a stable, guaranteed employment system known in China as the iron rice bowl.
This year, more than two million candidates registered for China’s civil-service exam, a 40% surge from last year, making it one of the most intensely competitive in the past decade, according to China’s Ministry of Human Resources and Social Security.
Last month, Evelyn Huang, a 25-year-old graduate from the University of California, Los Angeles, took the exam, despite having secured an offer as an algorithm engineer at a major Chinese internet company.
“Internet companies might start going downhill,” Ms. Huang said. “As many parents say, an iron rice bowl is more secure, especially at a time like this when the macro environment isn’t great.”
Among the younger generation, many would prefer to 'lie flat'.
Back in August, a widely-shared post suffered the wrath of the censors:
“The socialist successor of the new era does not attend after-school tutoring, does not play video games, does not chase celebrities,”
“They finish all their homework at school, read President Xi’s selected works for one hour everyday, go to sleep before 10 p.m., take the initiative to do chores, urge their parents to have more children and help look after them.”
That this post went viral suggests more than a grain of truth in there...
Chinese stocks are struggling too. The Hang Seng is eyeing the March 2020 lows
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Forget growth, stability is now the economic priority...
Annual central economic work conference wrapped up on Friday with leaders stressing the importance of boosting demand with ‘front-loaded’ policy support
Beijing hints it will ease up on regulation of big private players after a heavy-handed crackdown this year jolted domestic markets, and excessive capital growth may instead be curbed with a type of ‘traffic-light’ mechanism
“We are facing threefold pressure, including contraction of demand, supply shocks and weaker expectations,”
That's a big old triple threat. Take a look at the quotes in here 👇
“the disorderly expansion and barbaric growth of capital must be prevented”
“On one hand, the normal and orderly capital flow has a powerful role in promoting technological innovation and high-quality economic development. On the other hand, the profit-seeking nature of capital can easily lead to its barbaric growth and disorderly expansion,”
“It is more about controlling the negative role of capital from the perspective of avoiding social risks, rather than blindly curbing the development of capital elements,”
“Its essence is not meant to restrict non-public sectors … but to encourage, support and guide the healthy development of the non-public-ownership economy.”
When more state intervention is a large part of the problem, the CCP are ready to fix everything with... even more state intervention.
We can't see it working. Recession is on the cards for the year of the tiger...
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