The breakdown of China’s social contract

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Expert, unbiased reporting from Gaza, Israel and the Middle East. Try the FT’s comprehensive coverage for just £1 Sun Yu and Joe Leahy in Beijing Simply sign up to the Chinese politics & policy myFT Digest -- delivered directly to your inbox. In Yuxinzhuang village, a warren of narrow streets on Beijing’s outskirts known for its vibrant community of migrant workers, Zhou wolfs down noodles in a tiny Muslim restaurant. The 30-year-old father of one has a job setting up shell companies with fake cash flow for struggling small business owners, who then use them to raise new loans to pay off their previous creditors. But even this dubious line of business, which should thrive in a downturn, is suffering from China’s economic slowdown. Last month, Zhou’s income fell to a fraction of last year’s levels. Zhou, who did not want to give his full name, now plans to return to his family farm in the poorer central province of Henan and sell organic eggs. “I don’t know who to blame for the economic

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The breakdown of China’s social contract

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