The crisis is rooted in the structural issues of the administration that the CCP cannot resolve, experts say.
News Analysis
The top political conference of the Chinese Communist regime, known as the “Two Sessions,” is expected to begin on March 4th and last for a week.
The Rubber Stamp National Assembly approves a decision already made by the Chinese Communist Party (CCP), which already shows the priorities of the administration.
Before the meeting, state media released a message indicating the government’s focus. Experts say the Chinese administration is in a political and economic crisis and is not aware of the promises it will make during “two sessions.”
economy
CCP’s official media has released some of the remarks made by CCP leader Xi Jinping on the economy.
On March 2, the news agency of Xinhua, a national media outlet, published an article claiming that XI has always supported private companies.
CCP’s regular “Qiushi” Journal on March 1st published XI’s speech at the Central Economic and Labor Conference since December 2024. XI said the government must coordinate “the relationship between effective markets and efficient government” to form an economic order “which “will run the economy freely.”
Yuan Hongbing, an Australia-based jurist, told the Epoch Times on March 2 that he claimed that he has always supported private companies was a lie.
The Chinese administration has been implementing a policy of “national progress and private sector withdrawal” for years to curb the private sector.
Ewan said Xi had just sent harsh warnings to private entrepreneurs during a meeting with them last month. XI told them that during difficult times, private companies must contribute more money and effort to form a CCP state-owned enterprise and cooperation system, and warned that passively foreign forces and those who exist are punished by law.
As the Trump administration launches a strong economic containment against the CCP and foreign capital is fleeing China, the CCP and XI are forcing private companies to invest and cooperate in CCP tyrannical state-owned companies, Yuan said. This is tearing private companies once again under a banner implementing a market economy to help CCP survive the current economic crisis.
Trump announced on February 27 that he will be subject to a further 10% tariff increase on Chinese goods in early February, starting March 4, to 20%. Three major Chinese stock markets, Shanghai, Shenzhen and Hong Kong, plummeted after the announcement.
The Chinese administration has filed a complaint with the US at the World Trade Organization regarding increased tariffs, suspended timber and some agricultural imports from the US.
Xu Zhen, a senior expert in the Chinese capital market, told the Epoch Times that the Chinese administration is in turmoil, judging by the CCP’s current measures to address the rise in Trump’s tariffs that are ineffective.
He said that XI is unaware of the illness in the CCP system, but is now urging bureaucrats to “run the economy freely” and “control.”
Xu said Xi’s recent remarks on the economy show that the political boundaries of the party that manages the economy have suffered from a major set-off, and that his authority has been severely challenged and lost control of mid- and lower-ranking officials. “The inaction of CCP officials is a soft resistance to Xi and showing dissatisfaction with him,” he said. “XI wants to boost the economy through domestic demand and save CCPs from private companies, but that’s hopeful and it’s too late.”

Abandoned villa on March 31, 2023, on the outskirts of Shenyan in the province of Riaon, northeastern China. Jade Gao/AFP via Getty Images
Political Security
Before the “Two Sessions,” the CCP suddenly announced its newly revised “National Emergency Response Plan for Major Public Events” on February 25, highlighting social stability and strengthening public opinion guidance and central headquarters. In addition to natural disasters, accidents and public health cases, the revised plan also targets “security incidents.”
Yeh Yao-Yuan, professor of political science and international studies at St. Thomas University, told the Epoch Times on March 2, that the introduction of this revised plan means it is against the backdrop of China’s economic downturn. Some people may challenge the CCP’s central committee, so authorities must gain more intelligence to prevent it. “To some extent, it also shows that the top leaders of the CCP, especially Xi Jinping, are pessimistic about the future political stability of the administration,” he said.
Yuan said the CCP’s purpose in announcing the plan was to address sudden military uprisings, civil unrest and various social crises. “Because they already feel the danger.”
“The biggest crisis facing CCPs today is actually the merger of that crisis with the crisis of Xi Jinping’s personal dictatorship,” Ewan said.
He said the main political issues facing Xi’s dictatorship now comes from three directions. Almost every official within the CCP is unhappy with the XI dictatorship, including some military officers. The US is strengthening its ties with Taiwan. ”
life
“Two sessions” usually present certain issues related to people’s livelihoods.
This year, Chen Sung-ki, a member of the National Committee of the Chinese Political Council and an academic scientist at the Chinese Academy of Sciences, proposed lowering the legal age of marriage to 18 in order to increase the number of fertility population bases. Currently, the man is 22 years old and the woman is 20 years old. The proposal caused ridiculous laughs among Chinese internet users. Meanwhile, China’s unemployment rate continues to rise as a record number of university graduates prepare to enter the job market in 2025.

The number of elderly people is increasing in China. Born in the 80s, the young couple is the only caregiver of four aged parents. Getty Images
Yuan said that China’s most important livelihood problem is the aging population, making it difficult to change. “At the same time, due to the recession, young people are reluctant to marry or have children because they can’t afford to have a family. This is a structural problem that CCP has no way of solving.”
He further said that during the Covid-19 pandemic, the CCP had forced Chinese people to take a vaccine that could have had various side effects and could contribute to the current wave of respiratory infections in China.
“Faced with these truly important issues regarding people’s livelihoods, the CCP not only dares to face them, but also tries to hide these crises by whitewashing the situation,” Ewan said.
“The ‘two sessions’ in CCP can’t really solve people’s livelihood problems. They are not meetings to solve problems, but meetings to hide problems,” he concluded.
Luo Ya contributed to this report.