The situation is getting worse in China
China’s economy has been shaken since Covid. The government is taking several steps to correct this, including giving banks freedom to distribute more loans. This includes providing a billion-dollar reinforcement package for the economy, but this condition of the economy has also affected the social fabric of the country.
There are reports that the crime rate has increased rapidly in China this year. This is not an increase in crimes such as theft or robbery in general, but rather, according to the agency’s report, there has been a huge increase in violent crimes. Due to this, maintaining law and order there is becoming a big challenge.
According to an AFP report, there was an incident recently in China in which a man drove a car into a crowded sports complex. According to official figures, 35 people died there and 43 were injured. Since China lifted Covid-related restrictions at the end of 2022, there has been an increase in these types of crimes. While China continually tries to keep people employed and increase confidence in the economy.
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What do the experts say?
On China’s economic situation and rising crime, Hongzhang Liu, assistant professor of political studies at Pitzer College of America, says rising crime incidents in China show the worsening macroeconomic conditions of the economy and the deteriorating social fabric. This is the effect of the irritation derived from the recession in the economy.
However, China’s side is different. The Foreign Ministry says China remains one of the safest countries in the world. Chinese officials say that last year there were only 0.46 incidents of murder per lakh people in China, while in the United States this figure was 5.7.
Booster dose given to the economy
To get the country’s economy back on track, China has recently given a stimulus package. China has approved a rescue package of six trillion yuan (about $839 billion). In this case, the financing will be done through a loan. This package will be spent over the next 3 years. This step will help China’s provincial governments raise funds to address their heavy debt burden.
This is expected to accelerate local economic activities in China. Earlier in September, the Central Bank of India had changed some rules to provide additional funds to the country’s banks for loan distribution. Its purpose was to increase cash flow in the economy.
The impact will also be visible in India
The measures adopted by the Central Bank of China in September caused a rise in the country’s stock markets. Whereas, after withdrawing capital from countries like India, foreign institutional investors (FIIs) started turning to China. China’s economy has not yet fully recovered from the shocks suffered during the Covid-19 pandemic. The package launched by China will give a boost to its economy, which can be a big blow to India’s program like ‘Make in India’.
