China celebrates the Year of the Rabbit amid inflation and social unrest
Beijing (AsiaNews) – China will celebrate the lunar New Year tonight, leaving behind the Year of the Tiger to usher in the Year of the Rabbit. Even though inflation, natural disasters and social unrest have dampened the holiday spirit, the government remains hopeful that the rabbit’s “quiet” nature might have a soothing effect on people after a year of the turbulent tiger. Fourth in the Chinese zodiac, the rabbit is closely linked to the moon and symbolises happiness and good fortune.
As required by tradition, Chinese everywhere, at home or abroad, will greet the New Year tonight with fireworks, dragon dances and traditional rites, celebrated mostly in the family. Gamblers are betting on 12 quieter months compared to the tumultuous year that passed, marked by earthquakes and flooding.
CLSA, a brokerage and investment group, predicted in its latest "Feng Shui Index" that the rabbit would have a positive influence on stock markets. "A reputedly placid, personable and prescient white rabbit will wrest the reins from the decidedly unpleasant and erratic tiger that's been tossing and turning the markets over the past 12 months," it said.
Yet, research carried out for the South China Morning Post has already undercut these predictions. It shows for example that Beijing has become more expensive than Hong Kong, quite a turnaround since the former British crown colony has had a major stock market for decades, with a highly Western-oriented outlook, factors that tend to favour higher prices.
Conversely, Beijing, heartland and capital of Mao’s revolution, has always had some of the lowest prices in Asia. The financial crisis, speculation and the real estate bubble changed this. Today, average prices are higher in the Chinese capital than in the former colony.
Hong Kong trader William Wong knows this all too well. He has lived in Beijing for the past year and discovered in that time that, except for taxis, he needs to pay more for almost everything else. For example, a bowl of stir-fried noodles with beef will cost HK$ 30 to HK$ 35 in Hong Kong but HK$ 41 in Beijing. And his case is not unique.
In fact, China’s National Bureau of Statistics announced earlier this month that the mainland's consumer price index rose 3.3 per cent last year. The government's target had been to hold inflation below 3 per cent.
The government is well aware that higher prices could damage domestic stability much more than human rights violations attributed to its officials.
Many hope that fireworks and the rabbit’s quintessential tranquil nature will fix the situation. However, if the goal is to prevent popular unrest caused by high consumer and food prices, it might be better to tackle the country’s endemic corruption problem and develop a domestic market that redistributes wealth.
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