FLASH
Shkruar nga Pamfleti
The dire diagnosis appears in a Beijing government newspaper: The United States is a “failed state.” But the propaganda conceals the “involution” the People’s Republic is facing.
What does the Chinese leadership think of America, or more precisely, what does it want the Chinese to think of it? According to an article published in one of Beijing's most important state newspapers, America is a "failed state."
A harsh, even insulting judgment, but one that reflects the language used today by official Chinese propaganda for the rival superpower.
The article was published in the Beijing Daily as China’s political leaders prepared to outline new long-term economic plans amid heightened rivalry with Washington. The newspaper wrote: “Where is the dignity of a superpower? For decades, the United States has maintained its shining image thanks to global hegemony, but today it is in a downward spiral.”
The article continues in strong tones: “The American aura has always been an illusion, its myth fragile. To put it in Trump's words, America has become a failed state, 'dying from within.'”
In a sarcastic tone, Chinese media cited events such as the Los Angeles fires, the political clashes between Trump and Musk, or tax increases and trade wars as “evidence of American moral ugliness and arrogance.” According to it, “after each episode, a layer is removed from Uncle Sam’s splendid robe, revealing the shame of a decaying empire.”
This discourse is not new. Chinese propaganda has for decades portrayed America as a degenerate, violent, divided society incapable of guaranteeing order and security, with the aim of showing its citizens that Western democracy is a failed system. According to analysts, the strongest turn in this narrative came in 2008, after the global financial crisis. The subprime crisis, the fall of Lehman Brothers and the collapse of Wall Street were interpreted in Beijing as proof of the “superiority of the Chinese socialist model.”
When Xi Jinping, a staunch nationalist and fierce critic of the West, came to power in 2012, anti-American propaganda took on an even stronger tone. Terms like “declining civilization,” “Western disease,” and “an empire collapsing from within” have become a daily part of official discourse.
However, the reality on the ground is more complex. Many young Chinese do not believe this narrative. At universities like Cornell and MIT, Chinese students openly declare that they do not want to return to their homeland after their studies, because the job market in China is oversaturated and wages are much lower than in the United States. Youth unemployment is at record levels, while economic growth is slowing significantly.
According to a report by the Wall Street Journal, the Chinese economy is experiencing an internal crisis called “involution” (neijuan) – an endless race, without real progress. This “overload” of competition, once seen as a force for development, is turning into a trap: firms produce too much, earn too little, wages fall and prices fall, fueling a deflationary spiral.
Faced with a collapse in the real estate market, Beijing has invested heavily in manufacturing and high technology, such as electric cars, solar panels, robotics and microchips, providing loans, subsidies and tax breaks. But this “industrial Keynesianism” has had the opposite effect: massive overproduction and price wars.
In the electric vehicle industry alone, China has more than 100 manufacturers, many of which sell below cost. Giant BYD offers models for less than $8,000, but only 30% of its dealerships are profitable. The rest survive by cutting wages and laying off staff.
So, as Xi Jinping aims for industrial autonomy and global technological dominance, the Chinese economy is hardening from within. Consumer prices are frozen, industrial production is declining, and household purchasing power is stagnating.
In popular parlance, the term “involution” has taken on a symbolic meaning: a society that runs faster and faster, but remains in place. From the “996” work rhythm (9 am – 9 pm, 6 days a week) it has moved to the new expression “007”, all day, every day.
International analysts sum it up like this: China produces a lot, but consumes little. To break out of the deflationary spiral, it needs to boost domestic demand, strengthen social welfare, and encourage consumption. But the Communist Party is hesitant, fearing that cutting production could cause mass unemployment and a decline in GDP.
Experts say Beijing is treading carefully, setting limits on overproduction and banning below-cost sales. There are slight signs of improvement: industrial profits rose 20% in August, and deflation has slowed. But growth remains fragile.
As the People's Daily wrote, “these are the necessary pains of the transformation to a more sophisticated technological economy.” In practical translation: China has no intention of abandoning the path of advanced industrialization, even if it means prolonging the difficult period of “involution.”
In the end, the country is faced with a dilemma: either it slows down to balance its economic model, or it continues to run in place, a victim of the same competitive mechanism that once lifted it to the top. /Adapted from "Pamphlet" by "Corriere Della Sera"
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