The looming crisis: Corruption and economic decline in China

Despite President Xi Jinping’s high-profile anti-corruption campaign, corruption remains deeply entrenched in China.

New Delhi: In recent years, China has faced mounting challenges that threaten the stability of its leadership. Two of the most pressing issues are official corruption and a faltering economy. These intertwined problems could have significant repercussions for the Chinese Communist Party (CCP) and its grip on power.
Despite President Xi Jinping’s high-profile anti-corruption campaign, corruption remains deeply entrenched in China. The campaign has seen thousands of officials prosecuted, yet the problem persists. Corruption in China is not just a matter of a few bad apples; it is systemic, affecting all levels of government and the economy. This pervasive corruption undermines public trust in the government and erodes the legitimacy of the CCP.
China’s economy, once the envy of the world, is now showing signs of significant strain. The abrupt end of the “zero COVID” policy was expected to rejuvenate the economy, but the recovery has been sluggish. Key sectors like real estate are in crisis, with property prices plummeting and major developers defaulting on their debts. Additionally, structural issues such as overcapacity in industrial production and a rapidly aging population are exacerbating the economic slowdown.
The combination of corruption and economic decline creates a vicious cycle. Corruption hampers economic growth by distorting markets and discouraging foreign investment. As the economy slows, the opportunities for corrupt officials to enrich themselves diminish, leading to increased competition and infighting within the CCP. This internal strife can weaken the party’s cohesion and effectiveness.
Moreover, economic hardship tends to amplify public dissatisfaction. When people struggle to make ends meet, they are more likely to blame the government for their woes. In China, where the social contract is based on economic prosperity in exchange for political compliance, a failing economy could lead to widespread unrest.
For the CCP, the stakes are high. Maintaining economic stability is crucial for its survival. If the leadership cannot address these issues effectively, it risks losing the support of the populace. This could lead to increased social unrest and potentially challenge the CCP’s hold on power.
In conclusion, the dual threats of corruption and economic decline pose a significant risk to China’s leadership. Addressing these issues requires not only robust economic reforms but also a genuine commitment to rooting out corruption. Without such measures, the CCP may find itself facing a crisis of legitimacy that could have far-reaching consequences for the country.

• The Dalai Lama’s nephew, Khedroob Thondup is a geopolitocal analyst.