Many civil servants in Jiangsu, Zhejiang, Guangdong, Fujian, and Guangdong provinces have had their salaries trimmed since December 2021 with the rate cut between 20% to 30%, the Epoch Times citing local sources reported.
Accordingly, Shanghai has been considering a salary cut and Shaoguan has mainly reduced payrolls.
One female official in Zhejiang said on social media that her salary has been cut by 25%. She was given no explanation for the wage reduction. There has been no official announcement about the issue.
NetEase reported on Dec. 10 that local governments were changing the officials’ salaries according to their financial health.
The cuts to civil servants’ salaries come as no big surprise. Among 31 provinces and cities in China, only Shanghai had a budget surplus in the first half of this year.
On Nov. 23, China’s Ministry of Finance announced that it had issued 6.5 trillion yuan ($1 trillion) of government bonds from January to October this year. By the end of October, the total outstanding loans of local governments in China were 29.7 trillion yuan ($4.7 trillion).
According to American multinational investment bank Goldman Sachs Group, the total contingent debt of Chinese local governments in China already accounts for more than half of its gross domestic product.
In a speech on Dec. 2, economist Li Daokui forecast that China’s economy was struggling through the most challenging era in 40 years.
A Hong Kong media outlet reported that China’s current situation is similar to Japan’s burst bubble and the previous U.S. recession. One difference, however, is that neither Japan nor the United States is besieged on a global scale like the Chinese regime is now.