China’s government intervention has led to economic recession

In Japan, the hourly wage is 70 RMB, and in Australia and the United States, it’s around 20 USD per hour. Why are wages for the same work lower in China? Some say it’s because China has a large population, which leads to an oversupply of workers.

But that’s not entirely accurate. When companies hire more people than the actual number of jobs available, wages tend to be high. When companies hire fewer people while there are more jobs, wages are lower. It’s the basic law of supply and demand.

China’s biggest problem is the imbalance in the market environment. One industry is suppressed today, another one is suppressed tomorrow. Every time there’s a crackdown, many companies go under, resulting in the loss of millions of jobs.

With fewer jobs available, wages drop because there are too many people competing for too few positions. The high-level leaders of the Communist Party suppress the business sector because of a misunderstanding—they believe that all of China’s problems stem from the commercialization of the market economy.

In fact, China’s problems are rooted in an incomplete market economy. This partial marketization leads to extensive government intervention, which distorts the business environment and negatively affects both the social and cultural landscape.