The Economist - UK (2022-05-28)

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The Economist May 28th 2022 China 53

Earlier  this  year  Mr  Li  confirmed  that  he
would step down as prime minister when
his  two  terms—the  maximum  allowed  by
China’s  constitution—are  up  next  March.
(In 2018 Mr Xi engineered the scrapping of
the two­term limit on his own concurrent
job  as  state  president,  thereby  making  it
easier for him to stay on as party chief, the
state  and  party  positions  normally  being
held by the same person.) But Mr Li could
still influence the choice of his successor.
Evidence  of  a  Xi­Li  struggle  is  thin,
though. Mr Xi remains far more prominent
and very much in charge. State media still
gush about the presidentas well as policies
closely linked to him, such as the zero­co­
vid strategy. On May 21st the armed forces
were  reminded  to  include  the  “two  estab­
lishes”  in  their  political­training  pro­
grammes—shorthand  for  the  party’s  deci­
sion to establish Mr Xi as its core, and his
thought as part of its guiding ideology. On
May  24th  state  media  began  serialising
fawning  accounts  of  Mr  Xi’s  trips  around
the country during the past ten years. Chi­
na Media Project, a research group in Hong
Kong, notes that occasional absences of Mr
Xi from the front page of the People’s Daily,
the  party’s  main  mouthpiece,  are  in  line
with historical trends. 
At  times  of  great  stress,  such  as  that
China’s  economy  is  now  facing,  it  is  not
unusual  for  Mr  Xi  to  push  others  to  the
fore. In the early stage of the pandemic, in
January2020,MrLiwasthefirstcentral
leadertovisitthecityofWuhan,whereco­
vidwasdiscovered.InAugustlastyearMr


Li, not the president, paid a visit to Zheng­
zhouafter flooding killed hundreds in the
city. China’s paramount leaders have a re­
cord of working with prime ministers who
cultivate  an  image  of  being  in  tune  with
public suffering. Zhou Enlai played such a
role under Mao Zedong. Wen Jiabao did so
under  Hu  Jintao,  Mr  Xi’s  predecessor.  No
obvious power struggles were involved. 
There are certainly fewer whiffs of one
today than ten years ago, in the build­up to
the handover of power to Mr Xi at the par­
ty’s  18th  congress.  Early  in  2012  a  member
of the ruling Politburo, Bo Xilai, was arrest­
ed after what officials later described as an
attempt to stage a coup. Months before the
13th  congress,  in  1987,  a  struggle  between
conservatives and reformers led to the top­
pling of a general secretary, Hu Yaobang (a
subordinate of Deng Xiaoping). 
The fear that Mr Xi has struck in the bu­
reaucracy with his purges and campaigns,
and his stranglehold on the media, would
make it more difficult today to detect such
splits.  Inside  information  about  the  party
has  fewer  channels  through  which  to
spread.  Even  before  the  pandemic,  China
was  expelling  record  numbers  of  Western
journalists; covid has made it even less ea­
ger  to  issue  visas.  Mr  Xi  has  not  met  the
leader of any g7 country face­to­face since
the  pandemic  began.  The  signals  he  and
his  system  are  sending  may  not  yet  con­
vincingly suggest that serious fractures are
forming.Butgiventhesechallenges,asthe
20thcongressapproaches,eventhefaint­
estofsignalswillneedcloseattention.n

Atimelyreminder


Thousands of documents and photographs shed new light on China’s abuses in the
region of Xinjiang, where it is accused of detaining some 1m Uyghurs and other minor-
ities. The cache includes mugshots of detainees, some as young as 14, and security
protocols that describe a shoot-to-kill policy (after a warning shot) for anyone trying to
escape from the government’s “re-education” camps. The files, which date from 2018,
were reportedly hacked from police computer servers and released by the Victims of
Communism Memorial Foundation in Washington. The leak came as Michelle Bachelet,
the un’s human-rights chief, began a highly choreographed tour of Xinjiang.


Unemployment

Storming the


fortress


M


arriage, according to  a  French
proverb,  is  like  a  fortress  besieged.
Those outside want to get in; those inside
want  to  get  out.  That  thought,  immortal­
ised in the title of a novel by Qian Zhong­
shu from 1947, has more recently been ap­
plied  to  China’s  graduate  schools.  At  the
end of last year, a record 4.6m people tried
to  storm  these  fortresses  by  taking  the
postgraduate  admissions  exam,  an  in­
crease of over 21% from the previous year.
Some  of  these  test­takers  may  have  an
abiding  thirst  for  knowledge.  But  more
than a few are probably keen to delay their
entry  into  China’s  labour  market.  The  ur­
ban unemployment rate for young people
aged 16 to 24 averaged over 14% last year. In
April it rose to 18.2%, its highest level since
the survey began in 2018 (see chart on next
page).  Earlier  this  month  Li  Keqiang,  Chi­
na’s prime minister, described the employ­
ment  situation  in  China  as  “complex  and
grim”. One of his potential successors, Hu
Chunhua, identified college graduates as a
group of key concern.
This  group  will  be  unusually  big  this
year:  10.8m,  about  18%  more  than  in  2021.
Less  than  half  of  those  wanting  to  start
work  after  they  graduate  have  already  re­
ceived a job offer, according to a survey last
month  by  Zhaopin,  a  recruitment  firm.
That compares with over 60% at this time
last  year.  They  have  also  settled  for  lower
pay.  Their  average  monthly  salary  was
about  6,500  yuan  ($970),  compared  with
almost 7,400 last year.
Their  plight  is  easy  to  explain.  The  in­
creased  supply  of  university­leavers  has
met  faltering  demand.  The  economy  is
shrinking thanks to China’s strict “zero­co­
vid”  policy,  which  has  locked  down  some
of  the  best­educated  parts  of  the  country,
such as Shanghai and areas ofBeijing. Chi­
na’s  services  sector,  which  employs  many
college graduates, contracted by over 6% in
April, compared with the previous year.
Even  before  China’s  covid  lockdowns,
its  regulatory  crackdowns  had  inhibited
demand for college graduates. The govern­
ment  has  imposed  fines,  limits  and  new
obligations on China’s technology compa­
nies. For example, a nine­month freeze on
new  licences  for  video  games  damaged
Tencent,  China’s  most  valuable  private
firm.  It  is scheduling  lay­offs.  “Winter  is
coming,”  says  the  company’s  chief,  Pony
Ma, according to Caixin, a magazine.
A  bleak  season  has  already  arrived  for

H ONG KONG
Faced with a grim job market, many
youngsters would rather not enter it
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