It must be economics Friday

I don't usually post about economics on a Friday - I tend to try to find more esoteric stories to note.

But this article in South China Morning Post caught my eye.  Young Chinese are worried about their economy, too.  It starts:

As vlogger Ning Nanshan stares down the camera and launches into a lecture about China’s push for technological self-reliance, a flood of “bullet comments” begins floating across the screen.

“Go our own way and corner the rest of the world!” says one of the comments on

Bilibili

, a popular video-sharing site that allows viewers to post messages in real time.

“Our motherland’s five-year plan is so awesome!” says another as it flies across the monitor.

While most of Ning’s videos trumpet China’s advancements in manufacturing, he occasionally touches on more middle class concerns, like runaway house prices. There too, the bullet comments come thick and fast – although with a very different tone.

“It is impossible for house prices to fall, there is no solution to my despair,” says one user.

“Working hard is not the answer, it will not work,” reads another comment.

With few other outlets to express opinions, social media platforms like Bilibili have become important online gathering places for young Chinese. And while they can be home to dizzying displays of nationalism, they also provide brief windows into what some political analysts say is the “serious divergence” between China’s booming economy and the personal prospects of ordinary people.

Further down:

China was the only major economy to post positive growth last year, following a quick recovery from the coronavirus pandemic. Its gross domestic product (GDP) topped 100 trillion yuan (US$15.4 trillion) for the first time in 2020 – about 17 per cent of the world economy –

narrowing the gap with the United States

to only $6.2 trillion, from $7.1 trillion in 2019.

For China’s leaders, the GDP figure was a “milestone” that showed the nation’s economic and technological strength. Analysts have estimated the nation will overtake the US to become the world’s largest economy by 2028, five years earlier than previously forecast.

But the impressive headline figure fails to tell the whole story. Young Chinese in particular are taking to online platforms like Bilibili or Weibo to voice despair over skyrocketing house prices, widening inequality, and the increasing price of everyday goods.

More to my surprise, there are some comments by an "independent scholar" in Beijing which appear to be brave, very brave:

Wu Qiang, a political observer and an independent scholar based in Beijing, said the optimism about China’s economy on social media was mostly “Communist Party propaganda”, with many other topics out of bounds due to the nation’s vast online censorship system.

“The nationalism on Chinese media is a nihilistic statism, which is to conceal inequality through empty slogans without giving real equality and political rights to the people. This is reflected in the suffering people feel in their lives,” he said.

He said China’s strong growth under state capitalism was a “paradox” for many young people, who lacked comprehensive labour rights and work from 9am to 9pm, six days a week.

China’s relatively low household incomes and the small share of employment in the services sector also hint at the divergence between the nation’s booming economy and the life satisfaction of the average worker.

GDP per capita in China was around US$10,200 in 2019, compared to US$63,200 in the United States, according to the most recent World Bank data.

In 2019, China’s private consumption accounted for about 39 per cent of GDP, which was about 30 percentage points lower than the US and Europe, according to data from CEIC. It was also about 20 percentage points lower than developing countries such as India and Brazil.

Long story short - the dramatic rise in GDP is not improving the lives of the people as much as might be expected.

If I was Wu, I would be a bit nervous about knocks on the door and invitations to come speak to local party officials, in the next few weeks.