Xi economics views Chinese nationalism and authoritarianism as signs of a “happy life”

• Xi Jinping has been President of the Chinese Communist Party for 10 years.
• He has vowed to put up great effort to fulfil the people’s aspirations for a higher quality of living.
• Xi stated that “Our people love life and expect better education, more stable jobs, better income, more dependable social security, medical care of a higher standard”.

Ten years ago, when Xi Jinping assumed leadership of the Chinese Communist Party (CCP), he vowed to put up great effort to fulfil the people’s aspirations for a higher quality of living.

In a speech at the 18th National Party Congress in November 2012, Xi stated that “Our people love life and expect better education, more stable jobs, better income, more dependable social security, medical care of a higher standard, more comfortable living conditions, and a more beautiful environment.”

We must aim to fulfil the people’s desire for a good and beautiful existence.

Xi now has to work to raise living standards for 1.4 billion Chinese citizens as the economy faces its toughest challenges in decades. He appears to be securing a historic third term at the 20th CPP Congress, which starts on Sunday.

Xi’s mandate, which virtually establishes him as leader for life, ushers in a new era for China, the second-largest economy in the world, in which nationalism and political control increasingly take precedence over pragmatic policy-making centered on economic progress. Since Mao Zedong’s death, Xi has been the most powerful Chinese leader. As such, he has abandoned pro-market principles and reinstituted personalistic authority.

Although economic performance, including significant increases in living standards and decreases in poverty, has long been closely linked to the CCP’s legitimacy, Xi has reasserted state control over the economy by launching harsh and widespread crackdowns on the private sector that have slowed growth and undermined investor confidence.

China’s $18 trillion economy is slowing significantly after expanding by over 75 percent during Xi’s first nine years in office. A deflating housing bubble, COVID-19 lockdowns, economic separation from the West, and an impending demographic problem all pose threats to development in the coming decades.

The longer-term dilemma for Xi is how to continue China’s economy’s current rate of sustainable growth. According to Andy Mok, a senior research fellow at the Center for China and Globalization, which is supported by the government.

The days of China’s spectacular GDP growth of 8% or higher are over, but can four or 5% still be sustained?

Requests for comment from the Chinese Ministry of Foreign Affairs were not entertained.

A consequent crackdown on speculation and careless lending has had an impact on China’s overleveraged real estate market. Over the previous year, new housing prices have decreased by more than 2% in 70 Chinese cities. The bubble implosion poses significant threats to the Chinese economy. As much as 70% of China’s household wealth is related to real estate, which has replaced other asset classes as the primary investment vehicle for the country’s emerging middle class.

Choyleva claimed that Xi believes the nation’s disparity is being exacerbated by the current real estate market.

Also Read

Musk thanked by Chinese ambassador for suggesting special administrative zone for Taiwan

China's envoy to the US commended Elon Musk for suggesting a special...