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Economy

As China’s economy, population implode, Xi is looking to start a war

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China’s severe workforce woes have caught the attention of President Joe Biden.

Last Thursday at a Democratic Party fundraiser in Utah, he said the country had the “highest unemployment rate going.”

Biden could not have been referring to the official urban unemployment rate, which was listed as 5.2 percent in June. He had to be thinking of the figure for the out-of-work young people. Beijing reported that in June, 21.3 percent of China’s urban youth — those in the 16-24 age cohort — were unemployed.

Yet that shockingly high figure is deceptively low. For March, Beijing reported youth unemployment of 19.7 percent. It might have been 46.5 percent, however. Zhang Dandan of the prestigious Peking University wrote that perhaps as many as 16 million in the youth cohort had given up looking for a job that month. Add them into the pool, and the unemployment rate of course soars.

So what happens when almost half of a country’s young are without work?

For one thing, many of China’s unemployed young are refusing to have children themselves. “Sorry, we are the last generation, thanks!” was a popular Chinese hashtag in May of last year before authorities censored it.

Moreover, tens of thousands of young people now identify themselves on social media sites as “full-time children,” those returning to live with parents as they did in secondary school “because they simply can’t get work.”

Unemployment is driving others to turn their backs on society in different ways. The University of Pennsylvania’s Victor Mair put it this way in his Language Log: “‘Lying flat,’ ‘Buddha whatever,’ ‘Kong Yijiism,’ ‘involution’ — China today has so many memes for opting out.”

Other young people are opting out of China altogether by leaving their country permanently. There has been an unprecedented surge in Chinese migrants entering the U.S. over its southern border, many of them apparently in the under-25 age group. Customs and Border Protection reports that the number of apprehensions of migrants from China in the first five months of the current federal fiscal year was more than 1,000 percent larger than the number during the comparable period in the preceding fiscal year.

And there is always the possibility of radical political change. The Chinese people, young and old, are generally unhappy. There was a series of extraordinary protests late last year, including those across the country in major cities, in November.

People in November were enraged by a fire that claimed 10 lives in an apartment block in Urumqi, in the northwestern part of the country, because COVID-control measures had prevented firefighters from reaching the scene of the tragedy in time. Nationwide demonstrations occurred without coordination, leadershipor organization.

“This is people past their breaking point,” tweeted CNN’s Selina Wang.

In Shanghai, young people chanted “Down with Xi Jinping!” and “Down with the Communist Party!”

In Beijing, the Telegraph’s Simina Mistreanu reported that a crowd numbering at least 100 began marching toward Tiananmen Square.

“The fact that they intended to protest at Tiananmen,” she wrote, “is wild.” As Mistreanu reported, the demonstrators in the Chinese capital were shouting: “We want freedom, equality, democracy, rule of law,” and “We don’t want dictatorship.”

China throughout the Communist period has seen demonstrations, but most of them were, as Charles Burton at the Ottawa-based Macdonald-Laurier Institute told me last year, “highly localized” and “directed at malfeasance, corruption, and incompetence of lower level Communist functionaries.” Now, however, the anger is directed at the party itself.

“China is in trouble,” Biden correctly pointed out last Thursday, calling the country “a ticking time bomb.”

“They have got some problems,” the president said. “That’s not good because when bad folks have problems, they do bad things.”

Biden by “bad folks” was undoubtedly referring to Xi Jinping, who is now in war mode. For one thing, he cannot stop talking about war. His regime is fast making preparations for waging one, implementing the largest military buildup since the Second World War. He is also trying to sanction-proof the Chinese regime, stockpiling grain and other commodities, surveying America, mobilizing China’s civilians for battle, and purging China’s military of high-ranking officers.

The regime is also conducting “campaigns to instill loyalty to the Communist Party,” according to the New York Times.

And at the same time, as Richard Fisher of the International Assessment and Strategy Center told me last week, “the Chinese Communist Party has devoted enormous resources for cultivating ‘worship’ of the military among the young.”

Throughout Chinese history, young, unemployed Chinese males have brought down dynasties, such as the Yuan and the Ming. The last dynasty, the Qing, was rocked by such young men during the Boxer Rebellion.

Valerie Hudson and Andrea den Boer, in their much-discussed work “Bare Branches: Security Implications of Asia’s Surplus Male Population,” suggest a link between large numbers of unmarriageable males — the so-called “bare branches”— and the adoption of risk-taking foreign policies. Xi prides himself on being a student of his country’s past.

He also knows he is now being blamed for domestic difficulties. His policies are deepening the country’s economic and other problems, and he is probably thinking his best option is to rally people with a war, fought by the legions of the unemployed.

Gordon G. Chang is the author of “The Coming Collapse of China.” Follow him on Twitter @GordonGChang

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B.C.’s debt and deficit forecast to rise as the provincial election nears

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VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.

Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.

Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”

The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.

Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.

“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”

Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.

Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.

Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.

B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.

The election is expected to be called on Sept. 21, with the vote set for Oct. 19.

“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”

Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.

Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.

The premier said that now is not the time to reduce supports and services for people.

Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.

Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.

This report by The Canadian Press was first published Sept. 10, 2024.

Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.

The Canadian Press. All rights reserved.

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Economy

Mark Carney mum on carbon-tax advice, future in politics at Liberal retreat

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NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.

But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.

He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.

Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.

Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.

Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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Economy

Nova Scotia bill would kick-start offshore wind industry without approval from Ottawa

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HALIFAX – The Nova Scotia government has introduced a bill that would kick-start the province’s offshore wind industry without federal approval.

Natural Resources Minister Tory Rushton says amendments within a new omnibus bill introduced today will help ensure Nova Scotia meets its goal of launching a first call for offshore wind bids next year.

The province wants to offer project licences by 2030 to develop a total of five gigawatts of power from offshore wind.

Rushton says normally the province would wait for the federal government to adopt legislation establishing a wind industry off Canada’s East Coast, but that process has been “progressing slowly.”

Federal legislation that would enable the development of offshore wind farms in Nova Scotia and Newfoundland and Labrador has passed through the first and second reading in the Senate, and is currently under consideration in committee.

Rushton says the Nova Scotia bill mirrors the federal legislation and would prevent the province’s offshore wind industry from being held up in Ottawa.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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