MORE MEASURES NEEDED
Civil service jobs in China are highly coveted, as evidenced by the record 3.4 million applicants who sat for the annual civil service exam last month, competing for just 39,700 positions. These jobs are often seen as an “iron rice bowl”, offering stability and security.
However, the layered structure of civil servants’ salaries makes it challenging to determine how much they actually earn. During the previous pay hike in 2015, it was reported that monthly basic salaries ranged from 1,320 yuan for the lowest-ranked civil servants to 11,385 yuan for national-level officials. In addition to basic pay, civil servants also receive various allowances and subsidies according to their seniority and rank.
The latest pay raise is likely intended to emphasise that civil servants are critical for the proper function of the government and that their welfare and loyalty are important. But the optics of it risk alienating the broader population, particularly private-sector workers who face rising job insecurity.
This tension explains the relative secrecy surrounding pay raise for civil servants, as a transparent policy could backfire by inviting public scrutiny or triggering additional demands.
In his New Year message, President Xi Jinping expressed his confidence in China’s economy but acknowledged the Chinese government faces “new conditions”, including challenges internally and externally.
To address these challenges, China must adopt long-term reforms that go beyond one-off pay adjustments.
Internally, the Chinese government needs to take measures to establish the rule of law based on the fundamental rights of private property to retain and encourage private investment.
Externally, China will have to work more closely with its major business partners such as the United States and the European Union to strengthen their existing cooperation and to build strategic trust.
As Xi said: “Dreams and wishes may be far, but they can be fulfilled with dedicated pursuit.”
Professor Bo Zhiyue is the founder and president of the Bo Zhiyue China Institute, a consulting firm providing services to government leaders and CEOs of multinational corporations, and an author on China’s elite politics.
