Part 5/14:
One of the most controversial measures was the nationwide social security campaign launched in September, demanding increased payroll taxes from small businesses and self-employed individuals. These measures have temporarily increased tax revenues, but analysts warn this growth is unsustainable. Data comparing the first three quarters of 2024 and 2025 show a fragile uptick: three out of five major taxes declined last year, with only VAT and consumption taxes showing growth—yet this is largely attributable to aggressive tax collection, not genuine economic expansion. Once the government exhausts this “bottom of the barrel,” revenue growth will likely vanish, exposing China's economic fragility.