China’s economy has been shaken since Covid. The government there is taking various steps to fix this, including giving freedom to banks to distribute more loans. This includes giving a booster package of billions of dollars for the economy, but this condition of the economy has also affected the social fabric of the country.
There are reports of crime rate increasing rapidly in China this year. This is not about an increase in crimes like general theft or robbery, but according to the agency’s report, there has been a huge increase in violent crimes. Due to this, maintaining public order there is becoming a big challenge.
According to an AFP news, an incident was recently seen in China where a man entered a crowded sports complex with a car. According to official figures, 35 people died and 43 were injured there.
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Ever since China lifted Covid-related restrictions at the end of 2022, there has been an increase in such crimes. Whereas China is continuously trying to keep people employed and boost confidence in the economy.
What do experts say?
On China’s economic condition and increasing crime, Hongzhang Liu, Assistant Professor of Political Studies at Pitzer College of America, says that the increasing criminal incidents in China show the worsening macroeconomic conditions of the economy and the deteriorating social fabric. This is the effect of the irritation arising from the recession in the economy.
However, China’s side is different. The Foreign Ministry there says that China is still one of the safest countries in the world. Chinese officials say that last year there were only 0.46 murder incidents per 1 lakh people in China, whereas in America this figure was 5.7.
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Booster dose given to the economy
To bring the country’s economy back on track, China has recently given a booster package. China has approved a bailout package of six trillion yuan (about $839 billion). In this, funding will be done through a loan. This package will be spent in the next 3 years. This step will help China’s provincial governments to raise funding to deal with their heavy debt burden.
This is expected to accelerate economic activities at the local level in China. Earlier in September, the Central Bank of India had changed some rules to provide additional funds to the banks of the country for distributing loans. Its purpose was to increase cash flow in the economy.
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Impact will be visible on India also
The steps taken by the Central Bank of China in September had brought a rise in the stock markets there. 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 released by China will give a boost to its economy, this can be a big blow to India’s program like ‘Make in India’.
