16-07-2025

China's Growing Tensions and Internal Struggles

Date: 16-07-2025
Sources: economist.com: 6 | scmp.com: 1
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Image Source:

Source: economist.com

Image content: The image depicts two individuals shaking hands in front of a backdrop featuring the flags of China and the European Union. The man on the left is attired in a gray suit, complemented by a white shirt and purple tie, while the woman on the right wears an orange plaid jacket over a white top. **Key Elements:** * **Individuals:** * A man dressed in a gray suit, white shirt, and purple tie. * A woman wearing an orange plaid jacket over a white top. * **Flags:** * The flag of China is visible behind the man. * The flag of the European Union is displayed behind the woman. * **Background:** * The

Summary

A cluster of news articles reveals China's increasing internal and external pressures, including strained relations with Europe, local government fiscal crises, suppression of dissent in Hong Kong, and rising household debt. Additionally, there are discussions on potential governance models for Taiwan under the 'one country, two systems' framework.

Key Points

  • China's local governments face a severe fiscal crisis due to widespread misappropriation of funds
  • Tensions between China and the European Union are escalating ahead of a diplomatic summit
  • Hong Kong's pro-democracy movement is being suppressed, with its last functioning party disbanding

Articles in this Cluster

Beware tomes of Chinese political gossip!

The article discusses the phenomenon of Chinese officials reading banned political gossip books in secret, despite the Communist Party's prohibition. It highlights recent cases where high-ranking officials have been accused of keeping such books, and touches on the broader context of China's political climate and crackdowns on dissent.
Entities: China, Communist Party, Xu Zewei, Milan, Hong KongTone: analyticalSentiment: neutralIntent: inform

China and Europe’s savage squabble

The article discusses the strained relations between China and the European Union ahead of a summit in Beijing on July 24th, which was initially intended to celebrate 50 years of diplomatic ties but is now expected to be tense. The tensions contradict earlier speculations that China and the EU might strengthen their bilateral trade links in response to America's trade war.
Entities: China, European Union, America, Beijing, BrusselsTone: analyticalSentiment: negativeIntent: inform

China’s local governments are approaching a fiscal black hole

China's local governments are facing a severe fiscal crisis due to widespread misappropriation of funds, with over 40 billion yuan of state pension funds being diverted for other uses, such as repaying government debts, in 13 out of 25 provinces audited.
Entities: China, local governments, state pension funds, Weibo, The EconomistTone: negativeSentiment: negativeIntent: inform

Hong Kong’s last functioning pro-democracy party disbands

Hong Kong's last functioning pro-democracy party, the League of Social Democrats (LSD), has disbanded due to the increasingly draconian suppression of dissent by the Chinese government. The party's leader, Chan Po-ying, cited the impossibility of operating under the omnipresent 'red lines' as the reason for their disbandment.
Entities: Hong Kong, League of Social Democrats, Chan Po-ying, China, Leung Kwok-hungTone: negativeSentiment: negativeIntent: inform

Leung Kwok-hung, Hong Kong’s shaggy agitator for democracy

The article profiles Leung Kwok-hung, a prominent pro-democracy figure in Hong Kong known for his unconventional style and activism. It highlights his contributions to the democracy movement and the recent disbandment of his party, the League of Social Democrats, amidst a crackdown on dissent in Hong Kong.
Entities: Leung Kwok-hung, Hong Kong, League of Social Democrats, Che Guevara, Donald TsangTone: neutralSentiment: negativeIntent: inform

Why so many Chinese are drowning in debt

The article discusses the rising household debt in China, which has been fueled by the growth of a property-owning middle class and encouraged by government policies promoting borrowing. This has led to increased consumption, but also poses new risks as many Chinese struggle with debt, with some contemplating extreme actions.
Entities: China, Xu Zewei, Milan, Hong Kong, Leung Kwok-hungTone: analyticalSentiment: negativeIntent: analyze

The Taiwan papers: academics suggest how mainland China might rule the island | South China Morning Post

The article discusses a recent surge in academic research in mainland China on potential governance models for Taiwan, particularly under the "one country, two systems" framework. This increase in discussion is attributed to rising tensions between Beijing and Taipei, as well as President Xi Jinping's 2019 speech on Taiwan. The research draws lessons from Hong Kong's experience and emphasizes Beijing's direct authority, national security education, and vetting of senior officials.
Entities: Taiwan, China, Beijing, Taipei, Deng XiaopingTone: neutralSentiment: neutralIntent: inform