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Originally Posted by GirlySports
I'm more interested in what happens to the average Chinese citizen when there is no longer economic improvement. China can't realistically have +7% GDP growth every year and workers always getting raises. Over time, that bubble has to burst and there needs to be layoffs, what happens then? Or do they just lie and say it's +7% no matter what?
Also I think the measuring the middle class in China is inaccurate. The bottom limit is $3000 per year, that's only $10 a day, and cost of living in China is not getting any cheaper.
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Underrated comment. Life is always good, and politics secondary when times are good. That is why the CCP has spend the majority of their energy ensuring continued economic growth for decades. Did people care deeply about politics in Calgary in 2006-2013? Not in large part as the majority was doing very well, and it was about the endless growth in standard of living.
I would say the top of mind for CCP has to be a recession or worse and avoiding at all costs. Make no mistake with the way the CCP has been behaving to the world, and the way the world is reacting a contraction is coming. I just saw Britain is banning Huawei by end of summer, leaving our gov't to duck in behind that. India is moving away from China over their aggression. Supply chains will be reworked to move more away from China dependence.
Lastly, as much as I hear about how great Chinese tech is, a lot is based on American technology. Much of that is banned now. Good luck building a replacement to Android and getting anyone outside China to use it. Plus the state of the art processors to make high end phones are produced in Taiwan, that is based on American tech. End of day you have a middle performing phone with a copy cat OS. yikes.
Anyways, I believe there are coming repercussions to the Chinese economy. It might not be pretty, and you will see lots of people start to care about politics once again. Which would be very unfavorable for the current ruling party. A country fighting internally and externally would be disastrous.