At a State Council Information Office press conference on May 21, Justice Ministry Vice Minister Hu Weilie stated that the moves had led to the exemption of fines totaling over 11 billion RMB (approximately $1.53 billion). He acknowledged, however, that problems such as inaction, arbitrary enforcement, improper penalties, and lax supervision continue to occur.
Multiple analysts describe the purge not as genuine institutional optimization but as a passive contraction driven by severe fiscal pressure. Beijing scholar Yang Ming (pseudonym), speaking to The Epoch Times on May 24, said the Chinese economy remains in prolonged downturn, with foreign enterprises withdrawing, private businesses closing, worsening employment, and tightening local government finances.
“Tax revenue is insufficient, and even civil servant salaries have become a problem,” Yang said. Many local governments are struggling to operate, with some non-core departments paying only 80% of wages or delaying payments by three to four months.
Yang noted that authorities anticipate even greater fiscal strain ahead and are now reducing headcount to cope. “Those inside the system will increasingly find it difficult to get paid. The trend is obvious, so they are starting to cut people.”
“Temporary Workers Take the Blame”
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