The Big Take
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Sept. 19, 2024

Shanghai, China.  Photographer: Qilai Shen/Bloomberg

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President Xi Jinping’s move to reorient China’s economy from “high speed” to “high quality” growth has upended the lives of millions of ambitious Chinese professionals. As salary cuts, redundancies and pushback against affluent lifestyles become more common, a sense of malaise among the country’s best-educated workers risks exacerbating the gloom enveloping the world’s second-largest economy. 

“This signifies a dangerous undercurrent in the nation’s workforce,” said Christopher Marquis, Sinyi professor of Chinese management at the University of Cambridge. “These individuals were key drivers of China’s economic miracle, but their disillusionment could lead to a broader societal crisis as it challenges the Communist Party’s narrative of prosperity through hard work.”

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The Federal Reserve’s bumper interest-rate cut on Wednesday marked an aggressive start to a policy shift aimed at shielding the US labor market. On today’s Big Take podcast, Bloomberg’s Enda Curran explains what the surprisingly bold move means for the economy—and your wallet

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