Immediately after the Chinese Communist Party (CCP)’s 20th Congress, the Chinese regime continued to receive sad news. Xi’s new cabinet is facing mounting difficulties in its new term.
Vision Times cited data from the Ministry of Finance of China released on October 25, reporting that, from January to September, the country’s total public budget revenue was more than $2.1 trillion (15.3 trillion yuan), a decrease of 6.6%.
However, the country’s total public budget expenditure in the first nine months of this year amounted to $2.6 trillion (19.04 trillion yuan), up 6.2% year-on-year.
According to expert Song Weijun, the increased fiscal deficit is partly due to China’s spending too much on epidemic prevention following the CCP’s “zero-COVID” policy.
In addition, the stagnant real estate market in China also led to a sharp decline in the financial resources the local authorities retrieved from land sales.
Specifically, revenue from the sale of land by local authorities fell 26.4% year-on-year in September after falling 4.9% in August.
Song also said that the U.S. interest rate hike has led to a continuous flow of money out of China. As a result, China’s economy faces difficulties both internally and externally at the same time.
To deal with the difficulty, CCP has asked local authorities to tighten spending.
China’s Ministry of Finance on November 1 said local authorities are encouraged to increase revenue by selling or leasing idle public properties.
But, this measure may not help change the situation because observers said that the “zero-COVID” policy based on lockdowns is the leading cause of China’s economic tragedy.
AFP quoted Nomura Bank chief economist Lu Ting who noted that 207 million people are currently detained in varying degrees in at least 28 Chinese cities. So, there is no sign that the CCP is loosening the “zero-COVID” policy.
Lu added, “The actual economic recovery momentum [for China] is not strong.”