Although the economy is growing at a rate of approximately 5 percent annually, Chinese families are saving more due to worries about job stability and the ongoing ramifications of a long-term property crisis.
The majority of the economic growth has hinged on strong export performance. However, Chinese companies, affected by U.S. tariffs, have resorted to job cuts or wage reductions to manage expenses, leaving many recent university graduates struggling to secure employment.
The issue of financial strain gained intense attention last year when a driver deliberately crashed into a crowd, resulting in the deaths of 35 individuals in one of the deadliest incidents in the country’s history.
The court determined that the driver acted out of frustration over his divorce settlement, leading to a death sentence.
In response to this tragedy, the bi-monthly Communist Party publication, Qiushi, reissued a 2016 address by President Xi Jinping, which emphasized that “harmonious families contribute to a stable society”.
FINANCIAL STRAIN
Further evidence that the increase in divorces is linked to financial difficulties can be seen in demographic data indicating that wealthier coastal regions report lower divorce rates, while poorer inland and northern areas show higher rates.
Zhou Minghui made her divorce appointment herself after four previous attempts, anxious that her former husband might reconsider their decision to part ways.
She explained that her decision was prompted by what she deemed his “reckless financial behavior”, revealing that he lost nearly 4 million yuan in the stock market over three years, which led them to sell their home.
Despite this, they could only pay back slightly more than half of the debt he incurred from investing in stocks.
“In a declining economy, people should be cautious about investing or spending too much,” commented Zhou, a 38-year-old professional in the education sector in Shenzhen.
The decrease in divorce rates during the COVID pandemic now appears to be an outlier.
Demographers attribute this trend not only to the closure of non-essential services but also to the implementation in 2021 of a 30-day waiting period for couples seeking an amicable divorce outside of court.
