Authored by Alexander Liao via The Epoch Times,
As
we reach the midpoint of 2025, it is evident that this year has been
characterized by turbulence, uncertainty, and deepening despair for many
in communist China.
Six phenomena best capture the
country’s current state: decline, fierce competition, political
struggles, the “run” movement, random acts of violence, and the “lying
flat” movement.
They reveal the erosion of trust and a growing sense of disillusionment and unrest among the populace.
Decline
For
many in China, 2025 is the most challenging year in nearly three
decades, with numerous sectors of society experiencing a significant
downturn. The real estate market is the most notable example.
By
the end of May, average transaction floor prices for residential land
had fallen by nearly 50 percent in second-tier cities and almost 40
percent in third-tier cities. These prices are calculated by dividing
the total land cost by the total floor area that can legally be built,
providing a measure of the land acquisition cost for developers.
Local governments, heavily dependent on land sales for revenue, saw this vital stream nearly vanish—crippling their finances.
The
economic downturn is evident in the decline of consumer spending. Signs
of shrinking domestic demand include price wars in the electric vehicle
sector, the widespread closure of small businesses, and decreasing
sales of luxury goods such as cosmetics, high-end watches, and designer
handbags. Additionally, many foreign companies are either downsizing
their operations or leaving the country altogether.
Salary
cuts have affected employees across various sectors, including banks,
securities companies, civil services, and both state-owned and private
enterprises. Moreover, the unemployment rate among recent college
graduates is rising, leading many individuals to anticipate joblessness
after graduation.
Yet the most significant decline is not related
to the economy but to the public’s confidence in the regime. Among
ordinary citizens and government officials, many have lost hope in the
Chinese Communist Party (CCP). No amount of optimistic rhetoric or
economic stimulus can reverse this situation. The erosion of trust has
triggered capital flight and stock market exits, posing perhaps the
greatest legitimacy crisis the CCP has ever faced.
Fierce Competition
Excessive
competition within the same industry has been a longstanding issue
under communist rule, leading to infighting and internal exhaustion.
This
year has seen a notable increase in the closures of various businesses,
including restaurants, hair salons, bubble tea shops, beauty parlors,
and car dealerships. While the economic downturn is a significant
factor, internal competition has also played a vital role. There are too
many businesses vying for a limited demand, which has prompted them to
undercut each other in increasingly unsustainable ways. As a result,
many are struggling, ultimately leading to shutdowns, and the
deteriorating economy has only worsened this situation.
Political Struggles and Infighting
Infighting
among top CCP officials is one of the most sensitive and consequential
developments this year, particularly evident in the ongoing military
purge.
What began
in late 2023 as a sweeping crackdown on the Rocket Force—initially
targeting high-ranking officials seen as disloyal to Chinese leader Xi
Jinping—took a dramatic turn in the second half of 2024. In a striking
reversal, the latest purges have targeted Xi’s allies, suggesting a
weakening of his grip on power.
According to credible insiders speaking to overseas Chinese dissidents, Xi’s role has now become largely ceremonial. There are growing indications that top CCP officials have reached a consensus: Xi will soon be officially removed from power.
This unexpected power shift has become the defining feature of China’s political landscape in 2025.
‘Run’ Movement
This situation describes the increasing trend of Chinese citizens attempting to leave the country by any means available.
Following
the CCP’s draconian three-year COVID-19 lockdowns, a growing number of
people sought to emigrate to the United States, with some even illegally
crossing its southern border on foot. But with President Donald Trump’s
return to the White House, that pathway is now largely closed.
In
recent years, some Chinese also attempted to settle in Canada by
overstaying tourist visas and applying for political asylum. However,
Canada has also tightened its visa policies.
Now, Thailand and Malaysia have emerged as new destinations for middle-income Chinese hoping to join the “run” movement.
For
wealthier individuals, Japan has become an increasingly attractive
destination compared to many Western countries, thanks to its relatively
accessible business manager visa.
This visa has no requirements
for Japanese language proficiency, academic qualifications, or age
limits. Instead, applicants must invest a minimum of 5 million yen
(approximately $35,000) in a Japanese company, register the business,
and secure a physical office space.
Additionally, the business
must employ at least one full-time staff member who is either a Japanese
national, a permanent resident, the spouse or child of a Japanese
national or permanent resident, or a foreign national with long-term
resident status. Applicants can bring their family members if their
business plan is approved.
Regardless of their socioeconomic
status, many Chinese are leaving the country. This trend underscores the
grim reality of oppressive governance, where mounting pressures compel
people to take drastic measures.
Random Acts of Violence
Another disturbing phenomenon is the rise in random assaults over the past two years.
Many
Chinese, either trapped by overwhelming hardship or victimized by
injustice, have no outlet for their grievances. Tragically, violence
often ensues when they lash out in an attempt to express their pain. The
following events could be linked to this.
On Jan. 27, in Bozhou, Anhui Province, a sedan plowed into a crowd, injuring multiple people.
Then,
on March 23, a man carried out a knife attack outside a supermarket in
Shaoxing, Zhejiang Province, randomly targeting passersby. Several
people were reportedly injured. A netizen posted videos of the incident
on social media that may be disturbing to some viewers (link).
Just
days later, on March 26, in Anyang, Henan Province, a taxi drove
erratically down the road, hitting pedestrians and vehicles. Some
sources claimed that pedestrians and food couriers were killed. A
netizen posted a video on social media that may be disturbing to some
viewers (link).
Authorities quickly censored information regarding these incidents.
‘Lying Flat’
This
movement, initiated by young people in China in recent years, is a
response to societal burnout, where individuals withdraw from the
competitive frenzy and adopt a slower, minimalist lifestyle.
A new
term has emerged to describe individuals who take the concept of “lying
flat” to the extreme: the “Five Nos” youth. These individuals
consciously choose not to buy a house or a car, avoid making unnecessary
purchases, and forgo marriage and children. Their focus is on
minimizing expenses as much as possible.
As the economy continues
to deteriorate, this passive withdrawal from societal expectations has
become increasingly widespread. In essence, Chinese society seems to
have lost its vitality.
No Hope for Recovery Under CCP Rule
These miseries are the outcome of decades of communist rule coupled with a continuously weakening economy.
The
CCP had hoped to stimulate the economy by relying on an internal
circulation model, encouraging people to spend their remaining savings.
However, this strategy has failed because China lacks a reliable social
security or welfare system. With people earning less, they are too
afraid to spend. Consequently, consumption has stalled, and the economy
has slipped into deeper stagnation.
As a result, all the gains from years of reform and opening up have been exhausted as of today.
Furthermore,
the CCP’s governance model is detrimental to society, especially in
times of crisis. Misguided attempts to cling to power—such as
implementing the draconian zero-COVID policy during the pandemic,
adopting wolf-warrior diplomacy, and allowing the unchecked growth of
the real estate bubble—have seriously harmed Chinese society.
Worse
still, the Party has eroded China’s moral compass. Dishonesty,
betrayal, and opportunism have become increasingly commonplace,
resulting in a pervasive atmosphere of mutual distrust in everyday life.
In 2025, the consequences of this decades-long degradation have reached
a breaking point.
