Incomes are growing slower under Xi than any other Chinese leader in the last forty years

in #economy4 months ago

Here is a graph with percentage changes in income under Chinese leaders since Deng Xiaoping:


source

The Chinese economy is obviously maturing, and that brings slower income growth by itself. In addition there is this trade war with the USA.

But the main cause is Chinese domestic policy. For example Xi closed down the online tuition industry. This industry was purely domestic; Chinese teachers teaching Chinese students. All the teachers lost their jobs. The same thing happened to the Chinese gaming industry.

The second cause is the collapse of the Chinese property market. Many Chinese people have mortgages on properties that are unfinished. While they wait for things to resolve, they are diverting all their income into clearing their debt so they can move on. But this has caused a drop in consumption and has hurt the domestic economy.

You can see from the following graphic how new house building has fallen:


source

Xi is already 18 months into his third term. If things don't improve, he'll go down as the most unsuccessful Chinese President in the last four decades.

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