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China’s Economic Slump Sparks Alarm amid Citizens and Government

During the previous month, the largest annual political congregation, the National People’s Congress, took place in China. The notable announcement given by the country’s Premier, Li Qiang, was an anticipated GDP growth of approximately 5 percent for the coming year. The country is facing an economic slowdown which has led to an unfavourable employment context. This grim situation has incited a sense of alarm among citizens, with the worry that the ruling Communist Party might face a surge in criticism.

Guangdong Province’s biggest municipality, Guangzhou, also serves as a chief economic pillar in China’s southern region. On a daily basis, the city sees a flock of more than 10,000 migrant workers arriving at its employment centres, with hopes of securing positions in the local factories for garment production. However, the dwindling job prospects coupled with decreasing wages have left many of these workers devoid of opportunities suiting their skills.

The arising societal instability is causing an increasing amount of concern. An instance took occurred in Zhuhai City, within Guangdong Province, where an unfortunate episode resulted in 35 fatalities when a man of 62 years drove purposefully into a crowd. This horrifying event was followed by a similar incident in Hunan Province. A man, aged 39, drove his automobile into a group of bystanders gathered outside a school, leading to multiple injuries.

Migrant workers have been congregating in the suburbs of Beijing with aspirations of securing employment. A worker named Chen Qinggang, who made his way from Shandong Province, is among those. Chen came to find work but to his disappointment, the opportunities were scant. He narrates that about 1,000 job seekers found themselves competing for a mere 10 job openings.

Chen Qinggang’s struggle is not limited to his job prospect. In order to save money to send back to his family, he resorts to spending his nights in low-cost Internet cafes. This ordeal is progressively worsening with every passing day, and the situation has started to look increasingly dismal.

From workers to legal arenas, the crisis is being felt everywhere. A municipal organization in Beijing, responsible for resolving labor disputes, is overburdened. A woman who visited the organization for help with her unpaid wages, quoted her situation. She works in human resources at a Beijing-based IT company. She was paid last in September. However, since then she’s been unable to get in touch with her manager.

The woman sought assistance from the organization to arbitrate over her unpaid wages. She was told that the process of initiating the arbitration would last five months. This response left her feeling defenseless and questioning the government’s lack of protective measures for employees in her situation.

A phrase gaining ubiquity among Chinese citizens is ‘Garbage time of history.’ This notion encapsulates their current socio-economic scenario effectively. The financial downturn has doubly impacted the lesser-earning demographic and individuals with rural backgrounds, pushing them further into a state of despair.

While the violent incident in Zhuhai that tragically claimed the lives of more than 30 people was spurred by personal motives, it’s critical to also delve into the wider social elements at work. When such occurrences appear as a common societal pattern, the underlying contextual factors cannot be ignored.

To instigate growth, the Chinese government is centering its efforts on fiscal policies. During the inaugural day of National People’s Congress, Premier Li Qiang reiterated an economic expansion target of around 5 percent for this year.

The same week saw U.S. President Donald Trump announcing a supplemental tariff of 20 percent on imports from China, putting more pressure on the local economy. On the other hand, the country faces the threat of a limited workforce, which might lead to the exhaustion of pension funds reserves in the long run.

China’s pension system is majorly state-subsidised and with the financial constraints that are present, the capability to aid the underprivileged is being questioned. The existing social security services are proving insufficient, adding to the strains of an already slowing economy.

Post the incident in Zhuhai, media outlets in Hong Kong report that residential associations in Guangdong province have been directed to keep an eye on and report on individuals considered ‘high risk’. This reaction highlights the escalating tension and the societal impact of the current economic conditions.