China's Economic Crisis: Rising Costs and Job Market Struggles

The Chinese economy is struggling with rising living costs, job market pressures, and increasing debt, causing widespread hardships for citizens.

### Challenges in the Chinese Economy: Rising Prices, Job Market Struggles, and Debt Issues
* 📉 As the Chinese economy faces a downturn, the job market is tightening, leading to **decreased consumer spending** and **significant societal challenges**.
* 💰 The continuous rise in prices, particularly of essential goods, is increasing living costs, with **spinach costing 18.98 yuan** and **cucumbers at 6.99 yuan**, putting a heavy burden on residents.
* 🥦 Many citizens, including children, are at risk of malnutrition due to soaring food prices, with fruits now ranging from **8 to 10 yuan** and pork nearing **30 yuan**.
* 🏢 The housing market is also suffering, with reports of **significant declines in real estate prices**, as exemplified by a second-hand house priced at **28 million yuan**, which is now selling for **less than expected**.
* 🚦 The job market is increasingly competitive, leading many young people to seek alternative employment like **taxi or delivery driving**, while established companies face **bankruptcy**.
* 💔 Health issues are on the rise among young workers, with cases of serious conditions like **myocardial infarction** becoming more common due to **stressful living and working environments**.
* 📊 Local government debt has reached approximately **100 trillion yuan**, severely impacting their ability to **promote economic growth** and leading to **salary cuts and reductions in services**.
* ⚠ Experts warn that without significant policy changes, the Chinese economy may continue to struggle under the weight of **debt, stagnant markets, and lack of domestic demand**.

Hello, this is Lee Tae-hyun. As the Chinese economy faces a downturn, the job market is tightening, and consumer willingness to spend is decreasing. These factors are combining to create many abnormal phenomena in society. Internet users emphasize that they have never encountered such situations in the past and highlight the difficulties currently faced by the Chinese economy. The continuous rise in prices is increasing the pressure of living costs. The prices of essential goods, such as vegetables and fruits, have skyrocketed and are even comparable to meat prices. This is putting a heavy burden on residents' lives and significantly reducing their sense of happiness. In the video, you can see that 500 grams of spinach costs 18.98 yuan, which is about 3,500 won, while 500 grams of cucumbers cost 6.99 yuan, or about 1,300 won. Poor children are at risk of malnutrition. Life for the citizens is truly very difficult. The price of fruit has risen to 8 to 10 yuan, and even beef is priced at 4 to 5 yuan per jin.

The price of pork has become outrageous, nearly rising to 30 yuan. Originally, it was mostly around 20 yuan. Now, what can you buy for a hundred yuan? A bottle of canola oil, a box of Wuhan, and about two pounds of shrimp. Moreover, recently, gas prices have doubled, even in the middle of summer. The monthly electricity bill will exceed 1,000 yuan. How do people earning 4,000 or 5,000 yuan manage to live? Notably, many white-collar workers in Shanghai have started bringing lunch from home, resulting in a significant drop in consumption levels. The woman featured in the video is challenging herself to live on 500 yuan, approximately 93,000 won, for her living expenses in Shanghai. Living for a month in Shanghai on 500 yuan, on the ninth day of August: Good morning! This morning, I had military rice, and for lunch, I just packed a simple bento for work. I'm just getting by. After work, I plan to eat some spicy sauce.

I bought onions, cilantro, and garlic, and I also purchased three small peppers for 6.9 yuan. I got five eggplants for only 11 yuan. I'm planning to dry these to make dried eggplant. I bought five peppers for just 14 yuan, while at the supermarket, they sell for around 20 yuan per pound. I really got a good deal! For dinner, I had simple dumplings and sausages, along with a glass of lemon water. Today, I spent 38.8 yuan, and there are still 22 days left in August. My food budget is 500 yuan, and I have 214.33 yuan remaining. Young people from rural areas are really struggling to make a living in big cities. Some live in cramped basements, while others barely get by in shabby apartments. This video shows my actual life living in a new room worth 500 yuan, which is about 9,500 won, in the northern region.

The second floor is used, but there is no sink in the bathroom, so washing up is done in the yard, and the kitchen is very shabby. A woman from Shanxi living in the spiritual area pays a rent of 2,500 yuan, approximately 467,000 won, to live in a basement, and she is reportedly solving her meals with instant noodles. Not only is the living environment poor, but the working conditions are also less than ideal. Job seekers in Guangzhou and Shenzhen have been unable to find jobs, leading many to turn to taxi or delivery driving, resulting in fierce competition. A blog by Hoon pointed out that the current job market for general laborers has changed significantly. According to her, the number of taxi drivers and delivery workers nationwide is approaching nearly 100 million. Meanwhile, many locals who have become wealthy through redevelopment are enjoying an early retirement. This polarization is causing more and more young people to leave the frontline cities, resulting in a significant increase in the vacancy rate of urban homes. In such a competitive environment,

Young people need to put in more effort to stand out. As a result, high-intensity work and a Buddhist lifestyle have become part of daily life. Consequently, an increasing number of young people are experiencing age-related diseases and even mental health issues such as depression and hallucinations. The woman featured in the video is a 16-year-old elementary school teacher diagnosed with end-stage chronic uremia. She reportedly often held in her urine and had irregular meals. Yesterday, a 25-year-old patient with acute myocardial infarction was admitted to our department. The attending doctors were very busy trying to save him, but fortunately, they were able to remove the blood clot in his blood vessels. In recent years, there has been a growing number of young people in their 20s suffering from coronary artery disease or myocardial infarction. Many long-established companies in Guangdong and Shenzhen have gone bankrupt one after another, leaving workers lining up to receive compensation.

It is impressive that the one-person media in Guangdong Province has mentioned that Shenzhen, once famous as the world's factory, is quietly changing. People there no longer talk about which company is hiring, but rather focus on which factories are closing. The leading company in the global toy industry, Mattel Group, is an American-funded company that invested in the Pearl River Delta to build factories during the early stages of China's reform and opening up. Its subsidiary, the Zhongmei Wanggu factory in Nanhai, Foshan, which produces Barbie dolls, is celebrating its 40th anniversary this year. However, at this point, discussions in the industry have been further fueled by news that Mattel's Foshan factory will relocate its production in 2014, accelerating the conversation about Mattel's exit from China. This not only poses a serious blow to the Chinese economy but also threatens social stability. A recent report from the Hong Kong-based NGO China Labor Bulletin...

According to the report, in the first half of 2024, China experienced 757 incidents of human rights protection and strike protests, an increase from 696 incidents during the same period last year. Among these, the construction industry had the highest rate at 47.8%, followed by the manufacturing sector at 32.4%. Combined, these two sectors accounted for 577 incidents of protests, up from 517 incidents last year. Furthermore, not only is corporate profitability declining, but it is also becoming increasingly difficult to maintain small businesses and general shops, leading to a constantly worsening economic environment. To survive, some merchants in Beijing are even resorting to negotiating rent waivers. Tenants can maintain their lease if they pay their water and electricity bills on time. Beijing has set records in the luxury housing market, but what is noteworthy now is not the purchase of high-priced homes but the decline in housing prices. Currently, the situation is that when buyers sell real estate, they often cannot recover the original purchase price or market value.

We are in a situation where houses must be sold at prices lower than expected. This reflects a market downturn or the formation of a buyer's market, and sellers need to lower prices for a quick sale. Zhongxin Anfu, located in the western suburbs of Beijing, once attracted significant attention due to its prime location and scarcity. In the past, the price of second-hand houses in this area exceeded 200,000 yuan per square meter, with total prices reaching tens of millions of yuan. Last year, the second phase of this project, housing 550 units, sold out within a day without any special promotions. However, as we approach the third phase launch at the end of May this year, despite sufficient promotion and customer accumulation, only 30 out of a total of 150 units have been sold, resulting in a sales rate of less than 20%. Recently, a second-hand house priced at 28 million yuan has a cost of 141,800 yuan per square meter, while the selling price of new apartments is 155,000 yuan, making it a landmark luxury apartment.

Some of the traded apartments have prices close to 100,000 yuan per square meter. One of them, located at 181 Jemiro, including a parking space, was traded for 18.5 million yuan, which is approximately 3.5 billion won. Excluding the parking space, the price per square meter is about 100,000 yuan. Last year, the highest transaction price for similar housing was 27 million yuan, which translates to 149,000 yuan per square meter, and there is also information from brokers that at one point, the highest price reached 30 million yuan, around 5.7 billion won. This area features a newly completed apartment complex that opened last year. The high-end apartments built here have recently seen a drop of 6.8 million yuan and already have a market value. The living room and dining room are 72 square meters, and you can enjoy the sunset view from the home. There is also a parking space and a room with a password. Additionally, this area symbolizes the core industry of the region's luxury housing. Last month, a large bedroom of 223 square meters was traded in this project, and the total price for the middle floor is...

The price per square meter has fallen to 100,000 yuan, equivalent to about 48 million won for 22 million yuan. In May of last year, similar types of houses were traded at 3.85 million yuan, approximately 60.5 billion won, at a price of 142,000 yuan per square meter. In just one year, the total price has decreased by nearly 10 million yuan, around 1.9 billion won. In 2024, real estate price control policies have already been implemented in at least 11 cities, including Shenyang and Ningde. Industry experts report that the removal of these controls could lead to a sharp drop in real estate prices in some regions. For example, in the Wanhuan District of Wuyuan, the project price has decreased from about 23,000 yuan per square meter to 1,500 yuan. Similarly, the price of the Huangge Buliman project in Guangzhou has dropped from 20,000 yuan per square meter to 13,300 yuan. Experts in the industry suggest that the removal of price controls could trigger a significant decline in prices in certain areas, potentially resulting in unfavorable adjustments in the market.

I would like to point out that Jang Da, a senior expert at the Central Plains Real Estate, states that despite various policies implemented by the Chinese authorities to stimulate the real estate market, the downward trend in the market continues unabated. According to data, during the first seven months of this year, the total revenue of the top 100 real estate companies decreased by 40.1% compared to the previous year. Jang is concerned that the price decline in the Chinese real estate market could worsen due to the oversupply accumulated over several years, and he warns against purchasing real estate that may carry the risk of unfinished properties. Taiwanese scholar Liu Ming-jin analyzes that while the Chinese economy is nearing a bottom, it remains to be seen when it will rebound. He points out that the lack of domestic demand, local government debt issues, the stagnation of the real estate market, and the instability of household financial structures are major factors hindering economic recovery. Ming-jin particularly emphasizes the employment issue and...

The debt of local governments is currently a key issue in the economic recovery, and local governments are emphasizing that they can no longer promote investment through infrastructure construction due to the overwhelming burden of debt. According to reports, the problem of local government debt in China is becoming increasingly serious, with the total amount of bonds issued by local governments reaching approximately 4.2 trillion yuan, equivalent to about 798 trillion won, in the first seven months of 2024. The debt of local governments is estimated to be around 100 trillion yuan, approximately 1,900 trillion won. It is expected that the issuance of local government bonds will peak in the coming months. Experts warn that the pressure of local government debt has already reached its limit, and there is currently a lack of funds to even pay interest. Economist Li Xiang from the U.S. Institute for Strategic Studies notes that local governments are attempting to take on new debt through refinancing bonds to repay existing debts, but the debt crisis persists.

They said it is insufficient to resolve the issue, as the total amount of debt is excessively large, with interest alone reaching several trillion yuan. Local governments have no way to repay the principal and are forced to continue issuing bonds. According to official data from the Chinese government, as of the end of June 2024, the outstanding debt balance of local governments nationwide was 42.6 trillion yuan, approximately 89.4 trillion won. However, the actual debt size may be larger. According to Goldman Sachs estimates, potential debt, including local government financing platforms, totals 94 trillion yuan, about 178.6 trillion won. Faced with such massive debt, local governments have lost their repayment capacity, and in some regions, financial difficulties have arisen, leading to phenomena such as salary cuts and reductions. Newly issued bonds are mainly used for infrastructure construction, but their effectiveness has been less than expected, and some special bond funds have been misallocated.

The state is either in a normal condition or being used abnormally. The report points out that local governments are perpetuating a vicious cycle by continuously passing on the debt problem to state-owned enterprises and banks. Large state-owned enterprises and banks must hold these bonds, which could ultimately lead to a debt explosion crisis. Consequently, Goldman Sachs has downgraded the stock ratings of major Chinese state-owned banks. Yen Jianfa, head of the Democratic Progressive Party's office in China, noted that strict controls on external environments, restrictions on technology imports, and capital outflows have led to a stagnation in China's export and domestic markets, making it difficult for the economic situation to improve. Yen Jianfa criticized Xi Jinping's economic policies from the Cultural Revolution era, assessing that such political measures are not suitable for economic development. He pointed out that the current public ownership economic system in China lacks support for private enterprises, which is exacerbating capital outflows. The real estate market's

Due to serious losses and increasing internal and external economic pressures, Xi Jinping's policies are facing greater challenges, and his method of consolidating power is worsening the influence of other leaders, putting the Chinese economy in a difficult situation. This concludes today's video. Thank you for watching.

【중국인사이트】 中 지방정부 부채 100조 위안! 은행에 떠넘겨! 전문가 한계 도달?! (이태연 보도)

《칸중국》코리아

The Struggling Chinese Economy and Its Impact on Residents

The Chinese economy is facing a downturn, leading to a tightening job market and decreased consumer spending.

The rising prices of essential goods, such as vegetables and fruits, are putting a heavy burden on residents and increasing their living costs.

Many white-collar workers are now bringing lunch from home to save money, while some young people from rural areas are struggling to make a living in big cities, often living in cramped conditions.

Challenges Faced by Young Workers in China's Urban Areas

The living conditions for some young workers in China's urban areas are poor, with inadequate facilities and low-paying jobs.

The job market has become fiercely competitive, leading many to turn to taxi or delivery driving.

This economic polarization has resulted in a significant increase in urban home vacancy rates and has contributed to the rising prevalence of age-related diseases and mental health issues among young people.

Human Rights Protests and Housing Market Decline in China

In the first half of 2024, China saw an increase in human rights protection and strike protests, with the construction and manufacturing sectors accounting for the majority of incidents.

The economic environment is worsening, leading some merchants in Beijing to negotiate rent waivers for survival.

The luxury housing market is experiencing a decline in prices, with sellers struggling to recover their original purchase prices, resulting in a buyer's market and lower sales rates for new developments.

Real estate prices in China have dropped significantly, with the price per square meter falling to 100,000 yuan in 2024.

The implementation of price control policies in at least 11 cities has led to sharp declines in project prices.

Industry experts warn that the removal of these controls could further exacerbate the downward trend, while the top 100 real estate companies have seen a 40.

1% decrease in revenue compared to the previous year.

The Growing Debt Crisis of Local Governments in China

Local government debt in China is escalating, with bonds issued totaling approximately 4.

2 trillion yuan in the first seven months of 2024 and an estimated total debt of around 100 trillion yuan.

The issuance of local government bonds is expected to peak soon, but experts warn that the debt crisis is worsening, with local governments struggling to pay even the interest.

The massive debt burden has led to financial difficulties in some regions, resulting in salary cuts and misallocation of funds from newly issued bonds.

China's Economic Struggles and Debt Crisis

Local governments in China are passing on debt to state-owned enterprises and banks, leading to a potential debt explosion crisis.

Goldman Sachs has downgraded the stock ratings of major Chinese state-owned banks due to this issue.

Strict controls on external environments and a lack of support for private enterprises are exacerbating capital outflows and stagnating China's export and domestic markets.

【중국인사이트】中 지방정부 부채 100조 위안! 은행에 떠넘겨! 전문가 한계 도달?! (이태연 보도)

【중국인사이트】中 지방정부 부채 100조 위안! 은행에 떠넘겨! 전문가 한계 도달?! (이태연 보도)

【중국인사이트】 中 지방정부 부채 100조 위안! 은행에 떠넘겨! 전문가 한계 도달?! (이태연 보도)

【중국인사이트】 中 지방정부 부채 100조 위안! 은행에 떠넘겨! 전문가 한계 도달?! (이태연 보도)

【중국인사이트】中 지방정부 부채 100조 위안! 은행에 떠넘겨! 전문가 한계 도달?! (이태연 보도)

【중국인사이트】中 지방정부 부채 100조 위안! 은행에 떠넘겨! 전문가 한계 도달?! (이태연 보도)