China has continued to experience rapid economic growth. However, the view that the economy will continue to slow down for the next few years is becoming more and more prevalent. One manifestation of this is that the young generation who will lead the next generation are facing serious employment difficulties. More and more young people are seeking stability. The average ratio of applicants to positions for the national civil service exam for 2025, for which online applications closed in late October, was 86 times. In addition, another phenomenon is being observed. That is, the outflow of human resources overseas. It is estimated that the net outflow of the wealthy in 2024 will increase by 40% compared to two years ago. If this situation continues, there are concerns that the decline due to aging will become a reality before economic growth can bring prosperity.
In China, measures are needed to soften such anxiety and dissatisfaction. There are people in China who are dissatisfied with past and current policies. With the development of the market economy, conflicts arose between the management class that monopolized economic resources and the workers and farmers who did not. However, the increase in income due to rapid economic growth suppressed this discontent. Another safety valve was the existence of “resident committees.” In urban areas of China, there are “resident committee” organizations similar to neighborhood associations. The main role of these organizations was to support mutual aid. They listened to the requests of local residents to a certain extent and conveyed those requests to higher ups. On the other hand, these organizations also acted as subcontractors for the public security. The public security listened to the voices of the residents and responded with a combination of hard and soft measures. In cities, the power of these resident committees is beginning to wane. Rather than listening to the voices of the residents, they are becoming an organization that is top-down and controlled by the Communist Party.
The prevailing view is that China will continue to slow down. Of course, the Chinese government is not accepting this trend. The Chinese government is exploring how to ensure that the younger generation can earn sufficient wages and be proactive in spending. The decline in consumer confidence among Generation Z, aged 15-29, who are the main consumers, is a factor that could deal a blow to the economy. One way to mitigate the economic slowdown is to increase production efficiency and increase consumer confidence. The second is to reduce people’s anxiety and worries. Resolving anxiety and worries requires counseling skills. In the past, resident committee members worked to ease the anxiety and dissatisfaction of local people. Measures to change the Communist Party’s top-down approach to bottom-up approach may also be necessary. I hope that politics will change in the direction of resolving the people’s anxiety and dissatisfaction.
