What happened
China's economy has been declining in recent years, with its nominal GDP dropping from 70.2% of the US's GDP in 2020 to 63.3% in 2025. Foreign direct investment has also fallen sharply, from $344 billion in 2021 to $19 billion in 2024. The country's housing market is facing significant challenges, with investment in housing as a percentage of GDP dropping by over 50% between 2020 and 2025.
The Chinese government is facing growing domestic dissent, with thousands of protests reported across the country driven by economic pressure. The population is also aging rapidly due to the one-child policy, which has resulted in a significant demographic imbalance. Urban youth unemployment has reached nearly 19%, and the economy is struggling to generate enough domestic consumption and household demand to sustain growth.
The government has responded to these challenges with increased repression, particularly against religious practitioners. Over a million Uyghur Muslims are being held in concentration and forced labor camps, while Falun Gong practitioners and Chinese Christians are facing brutal treatment, including torture and imprisonment.
