Beijing: Despite President Xi Jinping's assurances of a prosperous future, skepticism among the Chinese populace is growing as the country grapples with worsening economic conditions. Over the past decade, the Chinese Communist Party's (CCP) policies have often exacerbated problems rather than alleviating them, leading many to question the Party's ability to restore prosperity.

In 2012, China was a rising economic powerhouse, with high consumer confidence, manageable debt, and abundant job opportunities. Today, the picture is starkly different. The economy is struggling, consumer confidence has plummeted, and a looming debt crisis threatens the financial system. Notably, youth unemployment has surged, with over one in five young Chinese aged 16-24 out of work as of August 2023. The global perception of China has also shifted, with many of its trading partners now viewing the CCP as untrustworthy and adversarial, leading to a significant reduction in foreign investments and factory operations within the country.

The CCP's geopolitical strategy has also changed drastically. Where China once sought to partner with the West and expand its influence through the Belt and Road Initiative, it now aims to dominate technology and impose its will on its partners. However, this approach has provoked resistance from the West, threatening China’s economic growth and technological advancement.

Comparisons between China and Taiwan further highlight the CCP's economic challenges. In 2012, China’s per capita GDP was $6,301, while Taiwan’s stood at $21,295. By 2024, China’s per capita GDP is projected to reach $13,136, while Taiwan’s is expected to soar to $35,129. Taiwan's success, driven by innovation and capital investment in high-growth industries, contrasts sharply with China’s experience under the CCP, which has often stifled growth.

A significant factor in China’s current economic woes is the CCP’s handling of state-owned enterprises. In the 1990s, the Party seized successful companies and placed them under Party control, leading to inefficiency and reduced profitability. These "zombie" companies were repeatedly bailed out with loans from banks supported by the People’s Bank of China (PBOC), creating a cycle of debt that now threatens the stability of the entire financial system.

In response to these challenges, the CCP has shifted its messaging, adopting a more nationalistic tone. Xi Jinping has promoted the "China Dream," a vision of a prosperous future that urges citizens to endure hardships as part of a "Great Struggle" to restore China’s historical prominence. This narrative draws heavily on China’s past, a tactic often used by political leaders facing declining legitimacy.

The CCP has also intensified its anti-West rhetoric, appealing to the cultural memory of the "Century of Humiliation" under Western domination. While some may buy into this narrative, the economic realities faced by the Chinese people—particularly the younger generation—tell a different story. Anthropologist Xiang Biao from Oxford University noted that China's Gen Z is facing a harsh reality, with many realizing that the promise of a well-paid, decent life through hard work and education has been broken. This disillusionment is not limited to the youth; in recent years, many of China’s millionaires and billionaires have moved their wealth and themselves out of the country, reflecting their lack of confidence in the CCP’s economic management.

As China’s middle class shrinks and economic opportunities dwindle, the CCP’s nationalistic and Marxist rhetoric is unlikely to reverse these trends. While the Party continues to push its vision of a new "China Dream," many Chinese citizens are increasingly disillusioned, recognizing that the previous dream has turned into a nightmare.