On October 1st, 2024, China’s Communist Party commemorated 75 years in power. Under the leadership of Mao Zedong, Communism flourished in China in the 1950s. More than thirty years after the fall of the Soviet Union, the Communist Party of China continues to maintain a stronghold on power. However, 75 years later, the Asian giant faces numerous economic obstacles that stifle its pre-pandemic momentum.
Despite the significant milestone, the Chinese government must lend its undivided attention to its frail economy in 2024. Plagued with crippling rates of youth unemployment, white-collar salary slashes, and diminishing middle-class wealth in light of crumbling real estate prices, targeted economic stimuli are the need of the hour. Last week, President Xi Jinping’s government rolled out a slew of measures to correct China’s economic slump. On Tuesday, the central bank dropped borrowing rates to trigger spending in the economy.
In the week leading up to the CCP’s 75th birthday, Chinese blue-chip stocks rose by 15%, recording the biggest single week jump in the last 16 years. Additionally, Reuters reported a 13% surge in Hong Kong’s Hang Seng index, hitting another 16-year high in 2024. The bullish sentiment surrounding festivities in China continued this week as the Securities Times, a state-run financial newspaper, reported the combined turnover on the Shanghai and Shenzhen exchanges surpassed 1.8 trillion yuan ($228 billion), reaching another record high.
In commemoration of the CCP’s 75th anniversary, President Xi Jinping echoes the troubling undercurrent that looms over the Chinese economy. Xi warned the Chinese people of “rough seas” ahead. “The road ahead will not be smooth; there will be difficulties and obstacles, and we may encounter major tests such as high winds and rough seas, or even stormy waves,” said Xi to 3000 CCP members and foreign dignitaries on Monday.
